Crypto markets are in a tailspin today, as Cardano and Dogecoin lead a cascade of losses following Bitcoin’s recent retreat from record highs. On August 20, 2025, Bitcoin slipped to $113,500, down over 1.5% on the day, prompting concerns among traders about a potential correction that could see the cryptocurrency sliding to $100,000. This downturn comes as U.S. inflation data throws cold water on hopes for rapid rate cuts, placing additional pressure on an already jittery market.
A Market on Edge
The crypto landscape feels like it’s walking a tightrope. Bitcoin’s dip below crucial trendlines has analysts like Alex Kuptsikevich from FxPro sounding alarms. “Bitcoin fell to $114,700, rolling back to levels seen two weeks ago and below the medium-term trend line, which is a 50-day moving average,” Kuptsikevich noted. “This dynamic reinforces fears of a deeper correction, which could affect the entire crypto market.” It’s a sentiment echoed in the broader market, as the total cryptocurrency market cap slipped by 0.4% to $3.87 trillion, stoking fears of a plunge toward $3.6 trillion. For more insights on the potential for a deeper pullback, see Bitcoin Steadies at $118K as Analysts Flag Deeper Pullback Risks and Altcoin Rotation.
The ripple effects are evident. Ether has fallen 1.8% to $4,159, a significant drop from its recent high, while XRP, Dogecoin, and Cardano have all seen notable declines. Cardano’s ADA, in particular, is down 6.6%, pacing losses among major tokens.
Inflation and Leverage: Twin Threats
The sour mood sweeping the crypto market isn’t just about price charts; it’s also a reflection of broader economic realities. U.S. inflation data has been hotter than expected, dampening hopes for quick action from the Federal Reserve. Joel Kruger, market strategist at LMAX Group, captures the sentiment: “Bitcoin remains in minor correction mode since posting its latest record high in the previous week. Sentiment has been mostly steered lower by hotter-than-expected U.S. inflation data.”
Meanwhile, leverage in the derivatives markets has reached eyebrow-raising levels. Ryan Lee, chief analyst at Bitget, warns that this could lead to more pronounced market swings. “Record levels of open interest in futures markets underscore how much leverage has built up across crypto,” Lee pointed out. “That leverage cuts both ways: it can accelerate gains if momentum continues, but it also amplifies volatility.” This aligns with recent discussions on the ongoing uptrend in Bitcoin prices, as detailed in Bitcoin risks new 2025 correction as BTC price uptrend starts 7th week.
Looking Ahead: Jackson Hole and Beyond
As traders brace for further market gyrations, all eyes are on the upcoming address from the Fed Chair at Jackson Hole. The speech could have far-reaching implications, not just for cryptocurrencies but across equities and forex markets. The anticipation is palpable, with analysts keen to hear any hints about future monetary policy.
While short-term volatility seems almost certain, some market participants remain optimistic about the long-term trajectory of digital assets. Institutional interest in cryptocurrencies, particularly Ethereum, remains robust. According to Kruger, “broader institutional interest remains resilient – evidenced by robust ETF flows and growing treasury allocations to ETH.”
Yet, the market’s current state raises questions: Will Bitcoin find stable ground above $100,000, or are we on the brink of a more significant correction? And can institutional support counterbalance the pressures from macroeconomic forces and leverage? The answers are as unpredictable as the market itself, leaving traders and analysts alike on tenterhooks.
Source
This article is based on: Cardano, Dogecoin Lead Crypto Losses as Bitcoin Traders Fear Pullback to $100K
Further Reading
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Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
