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Bitcoin (BTC) fell nearly 2.08% to around ~$115,000, while XRP dropped below $3. Ethereum (ETH) also fell sharply below $4,400.
US inflation and Producer Price Index (PPI) data shocked the market, causing Bitcoin to drop from ~$124,000 to around $118,000—creating a flash crash-like scenario with over $1 billion in leveraged trades liquidated.$BTC 
Investors have started taking profits, there were significant outflows from crypto ETFs, and volatility in the derivatives market increased.
Additionally, the new regulatory bill – Responsible Financial Innovation Act (RFIA) 2025 – is increasing financial uncertainty, which some senators view as a threat to financial stability.
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Mood of the past few days
After the PPI data, over $500 million in capital disappeared from the market as expectations were that the Federal Reserve would cut rates, but the data rejected those expectations.
Recently (on August 13), Bitcoin set a new ATH ($124,400), but within a few days it fell again—this rapid change reflects the uncertain mindset of investors.
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Major reasons behind the current bearish trend
1. Macroeconomic Pressure
US inflation, PPI, and potential changes in Fed policy have reduced the trend in risk assets (including crypto).
2. Slippage of Leveraged Trades
In a situation where prices are falling rapidly, leveraged trades have positions that quickly get liquidated, leading to further declines.
3. Profit-Taking Trend
As soon as prices fell below ATH, many investors started selling their investments, adding more pressure to the market.
4. Regulatory Confusion
New laws like RFIA and other regulatory developments have created uncertainty in the market.
5. Historical August Trend
According to CoinGlass, Bitcoin often faces declines in August—BTC has been down 8 out of 12 times in August.
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Summary Table
Reason Description
Macro data pressure Inflation and PPI are not giving clear signals as expected
Liquidations of leveraged players Market pressure from $1B+ in positions falling
Profit-Taking Immediate selling from new highs
Regulatory uncertainty RFIA-like laws are scaring the market
Historical August Weakness August has often been a weak month for crypto
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Conclusion
The bearish nature of the crypto market is complex, but the main drivers—such as economic data, leverage liquidations, regulatory uncertainty, and history—are clearly understandable.