TLDR
- Bitcoin trades at $115,902 after crypto market cap falls $75 billion to $3.86 trillion on August 19
- Profit-taking after recent all-time highs and Federal Reserve policy concerns drive the selloff
- Over $530 million in leveraged positions liquidated, including $124 million in Bitcoin trades
- Japanese firm LibWork approves $3.4 million Bitcoin purchase while SEC delays three crypto ETFs
- Market makers warn of further weakness through August despite institutional support
The cryptocurrency market faced pressure on August 19, 2025, with the total market capitalization dropping $75 billion to $3.86 trillion. Bitcoin currently trades at $115,902, maintaining support above the critical $115,000 level despite broader market weakness.
The decline follows a period of profit-taking after Bitcoin and other major cryptocurrencies reached new all-time highs. Investors have been locking in gains, creating selling pressure across the market.
Macroeconomic factors contributed to the selloff. Higher-than-expected U.S. inflation data, including a July Producer Price Index increase of 0.5% and retail sales growth of 1.2%, reduced expectations for Federal Reserve rate cuts in September.
The shift in monetary policy outlook made risk assets like cryptocurrency less attractive to investors. Traditional safer investments became more appealing as interest rate cut expectations diminished.
Leveraged position liquidations accelerated the market decline. Over $530 million in leveraged long positions were liquidated across the crypto market, including $124 million in Bitcoin and $184 million in Ethereum trades.
These forced sales created additional downward pressure on prices. The liquidations amplified market volatility and contributed to the broader selloff.
Market Predictions Show Caution
Polymarket odds suggest traders expect continued weakness through August. The most likely outcome for Bitcoin shows a 34% probability of closing below $111,000, while Ethereum faces a 43% chance of finishing near $4,800.
Singapore-based market maker Enflux noted the market faces conflicting forces. Strong institutional conviction exists alongside a lack of immediate retail participation.
Strategy Inc.’s additional 430 BTC purchase and VanEck’s $180,000 year-end Bitcoin target demonstrate institutional positioning for continued growth. However, retail-favored assets like XRP and DOGE remain capped by SEC delays on ETF approvals.
Derivatives positioning reflects market caution. QCP reported that perpetual funding rates turned negative over the weekend, a setup that preceded earlier market pullbacks.
Options skews now favor puts across maturities. This positioning suggests traders are hedging against further downside risk.
Institutional Activity Continues
Japanese construction firm LibWork Co. approved a ¥500 million ($3.4 million) Bitcoin purchase as a treasury asset. The company plans gradual purchases over coming months as an inflation hedge.
This move represents continued corporate Bitcoin adoption in Asia. The purchase decision came despite current market conditions.
The U.S. SEC delayed decisions on three major crypto ETFs, pushing review deadlines to October. The extensions affect ETFs from NYSE Arca, 21Shares, and Bitwise.
Technical analysis shows Bitcoin could drop toward $112,526 if the $115,000 support breaks. Alternatively, improved market conditions could push the price toward $120,000.
The total crypto market cap faces potential decline to $3.81 trillion if bearish trends continue. A recovery could target $3.94 trillion before reaching $4.01 trillion on stronger buying pressure.
Pump.fun emerged as the worst-performing token, falling 15% to $0.003074 with support at $0.002921.
