The main reason for the current decline in the cryptocurrency market today (August 26, 2025)
Summary:
•Bitcoin $BTC fell about 2-3% during the day, currently trading near $110,000 - $112,000.
•Ethereum $ETH experienced a larger decline, exceeding 3-7%, and is currently trading near $4,400 - $4,600.
⸻
Key factors causing the decline:
1. Major sell-off from a 'Whale'
•It appears that a massive investor sold 24,000 Bitcoins, pushing the market into a sharp decline, especially after transferring part of it to the Hyperunite platform and starting active sell-offs.
•This contributed to triggering a broad sell-off and charging negativity into the market.
2. Correction after stimulus highs from the Federal Reserve (Fed)
•Comments from Federal Reserve Chair Jerome Powell during the Jackson Hole Forum led to a temporary buying wave, but it later turned out to be a catalyst for profit-taking by investors, resulting in a sharp decline in prices.
3. Decrease in institutional liquidity and ETF funds
•Exchange-traded funds (ETFs) experienced significant withdrawal gaps, with massive investments exiting in a single week, particularly the first negative flows for Bitcoinspot funds since February.
4. Technical challenges (Technical Breakdown)
•Bitcoin broke through important support levels, such as the 50-day moving average, increasing automatic and regulatory sell-offs (liquidations) worth hundreds of millions of dollars within minutes.
5. Decline in total market capitalization
•In just 24 hours, the market capitalization of cryptocurrencies fell by about $42 billion, indicating a general trend towards a decline in sentiment. This is exacerbated by the pressure of economic uncertainty and a volatile regulatory environment.
6. Shifts from Bitcoin to Ethereum
•A relative rebound in investor interest in ETH at the expense of $BTC has been observed, indicating a redistribution of liquidity towards more volatile and profitable altcoins.
SOLTreasuryFundraising
