Bitcoin experienced a significant drop in the early hours of August 18, briefly falling to $114,955 before stabilizing above $115,200.
Market-Wide Plunge and Bitcoin’s Retreat
On Monday, Aug. 18, bitcoin (BTC) tumbled, briefly dropping to $114,955 before recovering and consolidating above $115,200. The top cryptocurrency’s 2.3% decline in 24 hours came just days after the release of disappointing PPI data sent it plunging from its Aug. 14 peak of $124,517 to just under $118,000 in a matter of minutes.
BTC’s latest drop means it has plunged by more than 7% in just four days, leaving it back in the range it has trended in since the start of August. This abrupt downward movement liquidated over $100 million in long positions.
In line with BTC’s downturn, a broad swathe of high-cap altcoins also tumbled, with both ethereum (ETH) and XRP shedding approximately 4.8% to trade at $4,250 and $2.97, respectively. After consistently defying market trends for several weeks and nearing the $4,800 milestone, ETH has now begun dropping in lockstep with its peers. However, despite this recent decline, the number two digital asset’s seven-day losses remained minimal at just 1%, suggesting it has maintained a degree of resilience and lower volatility compared to the broader market.
In sharp contrast to ETH’s resilience, XRP’s decline was far more pronounced, extending its seven-day losses to nearly 9% and positioning it as one of the hardest-hit assets among top altcoins. At the time of writing, other altcoins with notable losses included HYPE, which had fallen by 7.4% in 24 hours, along with SUI (6.5%) and SOL (5.8%), further underscoring the widespread negative sentiment across the market.
Crypto Economy Sheds Approximately $300 Billion
The tumble of most digital assets saw the crypto economy’s total market capitalization drop below $4 trillion for the first time since Aug. 10. Since peaking just below $4.3 trillion on Aug. 14, the crypto economy has shed 7.5% of its market cap in just four days.
Meanwhile, monero (XMR) stood out as a rare exception to the market-wide downturn, gaining approximately 4.7% in 24 hours to push its seven-day gains to 1.6%. The privacy-focused cryptocurrency has shown remarkable resilience, rising by nearly 18% since its plunge to $233 on Aug. 15. This recovery has successfully erased the losses from a prior sell-off that was sparked by reports of Quibic surpassing 50% of monero’s hashrate.
Other notable digital assets that registered gains in the same 24 hour period include LINK, which was up by 2.1%, and ARB, which rose 1.7%.