Why did cryptocurrency prices drop today?
Cryptocurrency prices experienced a significant decline today, August 18, 2025, with Bitcoin's price dropping by 2.5% to around $115,401, after surpassing $124,000 last week. Other major currencies like Ethereum (ETH) fell by 5.7%, XRP by 5.3%, Solana (SOL) by 6.2%, and Dogecoin (DOGE) by 5.6% [1].
This decline is attributed to several influencing economic factors:
1. Decline in expectations for U.S. interest rate cuts: Recent wholesale price data showed that inflation remains high, reducing the likelihood of the Federal Reserve cutting interest rates in the near future. This has diminished the attractiveness of high-risk assets like cryptocurrencies.
2. Statements from the U.S. Treasury Secretary: Treasury Secretary Scott Pient announced that the United States will not increase its Bitcoin reserves, which negatively impacted market sentiment.
Additionally, investors are awaiting statements from Federal Reserve Chair Jerome Powell at the upcoming Jackson Hole symposium, as well as the minutes from the last Federal Reserve meeting, which are expected to significantly influence market trends.
In light of these circumstances, investors are advised to exercise caution and follow economic and political developments that may affect the cryptocurrency market.
$BTC $ETH $SOL #Crashdown
