Key notes
- Bitcoin, Ethereum and many altcoins see strong drops.
- The global market capitalization of cryptography has dropped by almost 3%, wiping around $ 140 billion on the market.
- An exaggerated market, macro-events and a sudden influx of liquidity in speculative assets cause the sale pressure.
Bitcoin hopes (BTC) reaching $ 130,000 and Ethereum (ETH) breaking its peak of 2021 are under pressure with the lower momentum from multiple catalysts.
BTC reached a summit of $ 124,457 on August 14, while the market capitalization of the crypto reached 4.2 billions of dollars.
Leader Altcoin, ETH, was only $ 104 from the shot of a new ATH on the same day.
The weekly influx of $ 547 million in the funds negotiated in exchange BTC based in the United States was a notable catalyst, but what led the market was the record of $ 2.85 billion in the ETH ETF spot.
In addition, the report of the American consumer price index was added to positive impetus, monthly inflation was cooled from 0.3% to 0.2%, while the rate from one year to the next remained at 2.7% for the second consecutive month.
What does it mean? The fear of missing, which is very common on the cryptography market, has triggered great volatility. Coinmarketcap data show that August 14 experienced a sudden increase in positive feeling and the market has entered the greed area.
However, as Fomo has demonstrated, the global market capitalization of cryptography reached a decrease of 3% to 3.88 billions of dollars, according to CMC data.
What’s going on with Bitcoin and Ethereum
BTC is down $ 115,300 and ETH wanders below $ 4,300. XRP (XRP) also lost the price of $ 3.
The cryptography market has recorded more than $ 530 million in liquidations in the last 24 hours, led by the figure of $ 210 million in ETH, according to Coinglass Data. The increase in liquidations shows that the market was exaggerated, and even the slightest drop in prices sparked massive effits.
Another reason for high volatility, especially among low capitalization altcoins, is the sudden increase in the total value of decentralized finance. TVL increased from $ 129 billion on August 3 to nearly $ 160 billion on August 14.
Main events this week
Finally and above all, this week is marked by very impactful macroeconomic events which will not only exert pressure on the crypto but also on the wider financial sector.
US President Donald Trump will meet Ukrainian President Volodymyr Zelenskyy today on August 18. The minutes of the Federal Open Market Committee are scheduled for August 20, and the president of the Fed, Jerome Powell, will make a speech on August 22.
In addition, the American report on unemployment should be published on August 21.
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Non-liability clause: Coinspeaker undertakes to provide impartial and transparent reports. This article aims to provide precise and timely information, but must not be considered as financial or investment advice. Since market conditions can change quickly, we encourage you to check the information for yourself and consult a professional before making decisions according to this content.
Wahid analyzes and reports on the latest trends in the decentralized ecosystem since 2019. He has more than 4,000 articles in his name and his work has been presented on some of the main outlets, including Yahoo Finance, Investing.com, Cointelegraph and Benzinga. Apart from the reports, Wahid likes to connect the points between Defi and Macro on his newsletter, on Chain Moine.
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