Bitcoin News Today: Crypto Market Slides 2.5% Amid U.S. CPI Focus and Altcoin Volatility

The cryptocurrency market experienced a downturn on August 12, 2025, with most major coins registering losses. Over the past 24 hours, only ten coins remained in positive territory, while the overall market capitalization dropped by 2.5%, settling at $4.04 trillion. Total trading volume stood at $168 billion. Bitcoin (BTC), the leading digital asset, fell 2.5% to $118,947, dropping below the $122,000 mark it had previously touched. Ethereum (ETH) showed minimal movement, trading at $4,292 with a near-zero percentage change. Among altcoins, Dogecoin (DOGE) was the hardest hit, declining by 6%, while Tron (TRX) and Bitcoin Cash (BCH) were among the few performers in the green, up 2.1% and 2.4%, respectively [1].

The top 100 coins were largely in red, with notable declines in Story (IP), down 17.3%, and Pudgy Penguins (PENGU) and Bonk (BONK), both down over 12%. However, Pump.fun (PUMP) stood out as the best performer, rising 6% to $0.003623. Binance Research reported a shift in July toward altcoins, with Ethereum’s market share increasing to 11.8%. Meanwhile, Stripe was reportedly developing Tempo, a Layer 1 blockchain in collaboration with Paradigm, aiming to target Fortune 500 companies [1].

Analysts highlighted three key U.S.-related factors influencing the crypto market: economic data and Federal Reserve decisions, developments involving Donald Trump, and actions by Elon Musk. Alice Liu, Head of Research at CoinMarketCap, emphasized the importance of the upcoming U.S. Consumer Price Index (CPI) data, which could determine Bitcoin’s next all-time high or reinforce the ongoing rally. A softer-than-expected CPI could signal the possibility of a September rate cut by the Federal Reserve, which would likely boost risk-on assets like cryptocurrencies. Liu noted that volatility might intensify on Tuesday following the CPI release, with traders closely monitoring open interest in BTC and ETH options, which had reached nearly $57 billion combined [1].

Bitcoin and Ethereum spot ETFs continued to attract inflows. The U.S. BTC spot ETFs recorded inflows of $178.15 million on Monday, with BlackRock leading the way. The total net inflow for these ETFs now stands at $54.6 billion. Similarly, U.S. ETH ETFs saw record inflows of $1.02 billion, surpassing the previous all-time high of $726.74 million [1]. These figures highlight growing institutional and retail confidence in crypto as a tradable asset.

Investor sentiment remained cautiously optimistic, as reflected by the crypto fear and greed index, which dropped to 60 from 62 but still remained in the "greed" zone. This suggests that, while a pullback is expected after recent gains, the market is not in a bearish phase. On-chain data also indicated that traders holding Ethereum for less than 155 days were realizing gains, signaling near-term uncertainty [1].

Notably, Metaplanet, a Tokyo Stock Exchange-listed investment company, added 518 BTC to its holdings, bringing the total to 18,113 BTC. The company has been following its "555 Million Plan," with the goal of acquiring 210,000 BTC—approximately 1% of the total supply—by the end of 2027 [1].

The broader market was also influenced by macroeconomic trends. On Monday, major U.S. stock indices closed in the red, with the S&P 500 down 0.25%, the Nasdaq-100 down 0.36%, and the Dow Jones Industrial Average down 0.45%. Investors were shifting their focus from concerns over tariffs to upcoming economic data releases, particularly CPI and potential Fed policy changes [1].

Analysts remain divided on the sustainability of the recent dip. While pullbacks after a strong rally are common, the market’s underlying fundamentals—driven by ETF inflows, institutional buying, and macroeconomic expectations—suggest that further upside remains possible in the near term. However, caution is warranted given the high open interest in derivatives markets and the potential for sudden price swings [1].

Source:

[1] Why Is Crypto Down Today? – August 12, 2025 (https://cryptonews.com/news/why-is-crypto-down-today-august-12-2025/)