Bitcoin News Today: Crypto Market Tumbles 5.4% as Fed Rate Hopes Wane and $860M in Longs Liquidated

The cryptocurrency market saw a sharp correction in late August 2025, with Bitcoin, Ethereum, and leading altcoins all posting significant declines. Bitcoin fell 2.3% over the past 24 hours to $115,414 and lost 5.4% in the last seven days, bringing its market capitalization to $2.29 trillion. Similarly, Ethereum dropped 5% in a single day to $4,261.47 and declined 0.9% weekly, with its market value at $513.5 billion [1]. The broader market lost $71 billion in value, reducing total crypto market capitalization to $3.85 trillion amid growing concerns over the likelihood of a Federal Reserve rate cut, which fell from 98% to 84% [2].

XRP, Solana, and Dogecoin joined the downward trend, with XRP dropping 4.8% to $2.97 and losing 9.1% weekly, while Solana fell 5.8% to $181.34 and Dogecoin dipped 4.7% to $0.2227. BNB was a rare exception, managing a 1.2% weekly gain despite a 2.7% 24-hour loss [1]. The selling pressure across the sector indicates a shift in investor sentiment, with traders reassessing exposure to risk assets amid tighter monetary policy expectations.

Amid the widespread decline, some smaller tokens bucked the trend. Amaterasu Omikami surged nearly 100% in 24 hours, rising to $0.04496. Other smaller altcoins such as Rize, Bio Protocol, Mamo, and Strike also recorded significant gains [1]. The performance of these smaller assets has drawn renewed attention to niche tokens, suggesting that while the broader market remains bearish, pockets of optimism still exist.

The sharp correction also led to heavy liquidations across major crypto derivatives platforms, with over $860 million in long positions wiped out. Ether traders were the hardest hit, with $348.9 million in losses, followed by Bitcoin at $177.1 million [4]. This suggests a growing bearish sentiment as traders scramble to cut losses or lock in profits.

Technical indicators across several tokens pointed to continued weakness. The MACD for PUMP crossed below the signal line, and its RSI dropped from 56 to 38, while open interest declined by 6.41%. On-chain metrics such as Chaikin Money Flow also turned negative, reinforcing the outflow of capital [3]. The Pump.fun platform has also drawn scrutiny, with concerns about the long-term viability of the PUMP token following a massive token transfer to OKX [3].

While some analysts remain optimistic about Ethereum's relative performance, the broader market remains in a consolidation phase. Ethereum has gained 37.9% compared to Bitcoin’s 27.2% year-to-date, suggesting a potential shift in market leadership [2]. However, macroeconomic uncertainty and regulatory concerns continue to weigh on investor confidence.

Source:

[1] Why is Crypto Down Today? (https://coincentral.com/why-is-crypto-down-today-3/)

[2] Altcoin Season Could Begin in September as Bitcoin's Grip ... (https://cryptoadventure.com/altcoin-season-could-begin-in-september-as-bitcoins-grip-on-crypto-market-weakens-coinbase-institutional/)

[3] PUMP price dips 15% as Pump.fun offloads 2.5B tokens (https://coinjournal.net/news/pump-price-dips-15-as-pump-fun-offloads-2-5b-tokens/)

[4] Bullish Bets Lose $860M to Liquidations as ETH, BTC ... (https://cryptoadventure.com/bullish-bets-lose-860m-to-liquidations-as-eth-btc-xrp-doge-price-drop-9/)

[5] LTC Price Analysis: Could Litecoin Rally to $280 Soon? (https://thecurrencyanalytics.com/altcoins/litecoin-drops-to-118-but-analysts-see-path-toward-280-190977)