Bitcoin and Ethereum Struggle as Crypto Market Slips
BTC is down 2.4% in the past 24 hours, trading at $110,367, while Ethereum (ETH) has fallen by the same percentage to $4,555.
Quick overview
- Bitcoin (BTC) is trading at $110,367, down 11% from its all-time high of $123,566 reached on August 13.
- Ethereum (ETH) has also fallen 2.4% in the past 24 hours but remains up 7.1% for the week.
- Profit-taking by long-time holders and a shift of capital into smaller-cap cryptocurrencies are contributing to Bitcoin's decline.
- Global markets are experiencing a downturn, with major indexes in Asia and Europe closing lower.
The crypto market’s top coin is trading at levels not seen since early last month. Still, some altcoins are holding on to weekly gains.
Pessimism continues to weigh on cryptocurrencies this Tuesday, with the spotlight on Bitcoin (BTC). After hitting an all-time high on August 13 at $123,566, the coin has since dropped about 11%, now trading near levels from the first week of July.
BTC is down 2.4% in the past 24 hours, trading at $110,367, while Ethereum (ETH) has fallen by the same percentage to $4,555. Despite the pullback, ETH remains up 7.1% for the week, according to Binance data. Other major altcoins also show daily declines, though Solana and BNB still post weekly gains of 6.5% and 2.3%, respectively.
Why Is Bitcoin Falling?
Two key factors help explain Bitcoin’s recent slide.
First, long-time holders—known in crypto jargon as “whales”—took advantage of recent rallies to lock in profits. Analysts noted:
“BTC supply is concentrated around old whales who peaked in 2011. They bought their coins for $10 or less. It now takes more than $110,000 of fresh capital to absorb every BTC they sell.”
The second factor is a rotation of capital from BTC into smaller-cap cryptocurrencies, such as Ethereum, which itself hit an all-time high just days ago.
Traditional Markets
Global markets are also in retreat this Tuesday, with Wall Street in focus after U.S. President Donald Trump announced the removal of Lisa Cook from the Federal Reserve Board, citing alleged irregularities in mortgage lending.
In Asia, major indexes closed lower: Shanghai fell 0.39%, Hong Kong’s Hang Seng lost 1.18%, and Japan’s Nikkei 225 dropped 1.10%. European markets followed suit, with the Euro Stoxx down 0.70%, Germany’s DAX off 0.27%, and France’s CAC retreating 1.47%.
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