On August 12, 2025, the cryptocurrency market experienced a decline primarily due to cautious sentiment ahead of key U.S. inflation data releases. Here are the main reasons behind the crypto pullback today:
Bitcoin failed to sustain levels above $120,000, leading to a nearly 3% drop after an earlier small gain. This weakness in BTC triggered broad market caution.
Ethereum's price growth stalled near the $4,300 resistance level, causing some hesitation among traders despite underlying bullish optimism.
Many major altcoins also saw price declines in the past couple of days amid growing uncertainty and profit-taking.
Institutional investors and large players are holding back, waiting to see the results of the upcoming inflation data before committing to new positions, resulting in reduced buying momentum.
The overall crypto market capitalization declined by about 1.8%, dropping below the $4 trillion mark.
Despite the pullback, investment inflows into crypto funds remain strong, with Bitcoin and Ethereum seeing significant investment growth last week.
Large crypto whale activity continues, with significant buying of ETH and BTC noted, indicating optimism remains but is currently in a wait-and-see mode.
In summary, today's crypto market dip is mostly a reaction to market participants adopting a cautious stance ahead of important U.S. inflation figures, which are expected to influence future monetary policy and investment flows. This caution weighs on prices temporarily as traders and institutions prepare for potential volatility based on the economic data outcome.
Bitcoin, Ethereum, and other cryptocurrencies are currently consolidating around key levels while investors seek confirmation from broader macroeconomic signals before pushing prices higher again. The market awaits a catalyst to resume the prior bullish momentum.
