Cryptocurrency Market Slumps as Whales Take Profits, Ethereum and Dogecoin Also Decline

Cryptocurrency prices slid on Sunday night as whales took profits, with Bitcoin down 1.09% to $116,272.17, Ethereum down 0.51% to $4,390.04, XRP down 2.27% to $3.03, Solana down 1.13% to $186.59, and Dogecoin down 1.48% to $0.2285. Bitcoin's open interest rose 0.15% over the last 24 hours, indicating a surge in short positions. Ethereum sentiment weakened, but analyst Michaël van de Poppe ruled out an immediate correction for Ethereum, stating it needs to break above $5,000.

Cryptocurrency prices experienced a significant drop on Sunday night, with Bitcoin leading the way. Bitcoin's price fell by 1.09% to $116,272.17, marking a notable decline from its recent highs. Ethereum, the second-largest cryptocurrency, also saw a decrease of 0.51% to $4,390.04. XRP, Solana, and Dogecoin also registered losses, with XRP down 2.27% to $3.03, Solana down 1.13% to $186.59, and Dogecoin down 1.48% to $0.2285 [1].

The open interest in Bitcoin increased by 0.15% over the last 24 hours, indicating a surge in short positions. This could suggest that traders are positioning themselves for a potential downturn in the market. Ethereum sentiment weakened, but analyst Michaël van de Poppe ruled out an immediate correction, stating that Ethereum needs to break above $5,000 to avoid a significant decline [1].

The latest developments come amid a backdrop of shifting macroeconomic indicators and expectations for Federal Reserve rate cuts. After hitting a new all-time high above $124,000, Bitcoin saw its price retreat, falling below $117,000, as hot inflation data dampened expectations for aggressive interest rate cuts by the Federal Reserve. The CME FedWatch Tool now expects only two rate cuts this year, down from three [1].

Bitcoin's price volatility is closely tied to macroeconomic factors, such as inflation and interest rates. The Federal Reserve's concern about tariffs' inflationary potential and the recent surge in import prices have led to a recalibration of market expectations. The Federal Reserve's annual Jackson Hole Economic Symposium, scheduled for August 21 to 23, will provide further insight into the central bank's monetary policy stance [1].

Despite the recent price drops, some companies remain committed to Bitcoin as part of their corporate treasury strategy. For instance, Microstrategy, led by Michael Saylor, has continued to accumulate Bitcoin, with the latest purchase amounting to 155 BTC worth $18 million. This strategic approach to Bitcoin accumulation has been inspired by the company's success in converting corporate treasury to Bitcoin [2].

Investors should remain vigilant and closely monitor the upcoming macroeconomic indicators and the Federal Reserve's policy decisions. The cryptocurrency market is expected to remain volatile, with significant price movements influenced by both macroeconomic factors and market sentiment.

References:
[1] Mitrade Insights. (2025). Asia Pacific Morning Brief. Retrieved from https://www.mitrade.com/au/insights/news/live-news/article-3-1046487-20250818
[2] Investor Empires. (2025). Bitcoin Price Pumps Above $120,000 as Michael Saylor's Strategy Buys $18 Million Worth of Bitcoin. Retrieved from https://investorempires.com/bitcoin-price-pumps-above-120000-as-michael-saylors-strategy-buys-18-million-worth-of-bitcoin/