Bitcoin News Today: Crypto Market Slumps as Fed Policy Shifts Spark Widespread Selloff

The cryptocurrency market has experienced a broad selloff across major assets, with Bitcoin (BTC), Ethereum (ETH), XRP, Solana (SOL), and other altcoins all declining in value amid renewed macroeconomic pressures and shifting trader sentiment. The downturn, which has persisted over the past two weeks, reflects growing concerns over central bank policy uncertainty and market corrections following recent price surges [1][2][3].

Bitcoin, the leading digital asset, has slipped below $116,000, marking a sharp pullback from recent highs. The decline has reverberated across the broader market, with Ethereum dropping more than 10% from its monthly peak as ETF outflows and increased liquidations add downward pressure [4][5]. Solana and XRP have both seen price declines of around 5%, as traders look to lock in profits after recent bullish momentum [6]. The market’s overall bearish tone has led to widespread pessimism, with many traders questioning whether the recent selloff presents a buying opportunity or a further downturn [7][8].

Economic factors have played a central role in the market's current slump. A recent shift in expectations around the Federal Reserve’s rate cut timeline has caused volatility, with traders adjusting positions in response to revised forecasts. Initially high odds of a rate cut in the coming months have decreased significantly, pushing Bitcoin and Ethereum lower [9]. The combination of macroeconomic uncertainty and internal market corrections has created a perfect storm for crypto traders, especially in the retail segment, where sentiment has been particularly sensitive to news flow [10].

Despite the downturn, some analysts and market participants see the current dip as a potential entry point for long-term investors. XRP, in particular, has been highlighted as a candidate for accumulation, with speculation that more institutional interest could create additional buying pressure in the coming months [11]. However, the broader market remains in correction mode, and any signs of recovery will likely depend on macroeconomic clarity and renewed regulatory confidence.

The ongoing selloff underscores the fragile nature of the crypto market, which remains highly susceptible to both global macroeconomic conditions and internal dynamics such as trading volume and capital flows. While some altcoins show signs of resilience, the overall trend continues to reflect caution and risk-off behavior among traders.

Source:

[1] Why is Crypto Market Dumping Today? (https://coingape.com/trending/why-is-crypto-market-dumping-today/)

[2] Cryptocurrencies Extend Their Decline From Recent Highs (https://seekingalpha.com/article/4814622-cryptocurrencies-extend-decline-recent-highs)

[3] Ethereum price crash: Here's why ETH is down today (https://crypto.news/ethereum-price-crash-heres-why-eth-is-down-today/)

[4] Bitcoin Slips Under $116000 While Cardano, Solana Lead ... (https://stocktwits.com/news-articles/markets/cryptocurrency/bitcoin-slips-under-116000-while-cardano-solana-lead-altcoin-selloff/chsO7iYRdQw)

[5] Best Altcoins to Buy as Bitcoin Dips: XRP, SNORT, ADA ... (https://coincentral.com/best-altcoins-to-buy-as-bitcoin-dips-xrp-snort-ada-set-for-growth/)

[6] Solana & XRP take a 5% dip – Are traders dumping or just ... (https://www.mitrade.com/insights/news/live-news/article-3-1048234-20250818)

[7] Why Is Crypto Down Today? – August 18, 2025 (https://cryptonews.com/news/why-is-crypto-down-today-august-18-2025/)

[8] Why is the Crypto Market Down Today? Bitcoin and ... (https://coinpedia.org/price-analysis/why-is-the-crypto-market-down-today-bitcoin-and-ethereum-struggle-as-fed-concerns-rise/)

[9] Best Crypto To Buy On The Dip: Bitcoin, Ethereum Fall But ... (https://blockchainreporter.net/best-crypto-to-buy-on-the-dip-bitcoin-ethereum-fall-but-these-altcoins-are-bullish/)

[10] Crypto Crash 2025: Bitcoin Tanks Below $116K; ETH, XRP ... (https://www.goodreturns.in/news/crypto-crash-2025-bitcoin-tanks-below-116k-eth-xrp-sol-and-doge-fall-hard-is-this-a-buy-oppor-1450245.html)