Cryptocurrencies started the new week negatively, as Bitcoin, Ethereum, and other altcoins experienced a sharp decline, according to a report from Bitcoin Sistemi. Bitcoin dropped by 2.80% and was trading at $112,000. Ethereum fell by 8.20% to $4,060, XRP by 9.00% to $2.70, and Solana by 8.90% to $214.

Cryptocurrencies started the week negatively

The primary cause of this decline is a reduced optimism regarding interest rate cuts and general investor caution towards risky assets. The market has returned to levels seen before the FED meeting, indicating uncertainty associated with the macroeconomic environment.

A significant impact on the market was also due to a surge in liquidations. According to data from Coinglass, $1.8 billion in leveraged positions were liquidated within 24 hours. Of this, $1.65 billion were long positions and $85.9 million were short positions. The largest losses were recorded by Ethereum at $493.4 million, Bitcoin at $283.9 million, Solana at $95.4 million, and XRP at $78.9 million.

Rachael Lucas, an analyst from The Block, stated that the upward trend of Bitcoin may be nearing its end. According to her, the long-term growth that began at the start of the year is slowing down, with investors becoming more cautious. Lucas also noted that while short-term investors are expressing concerns, long-term investors are not panicking and selling. Based on on-chain data, she believes the market sentiment is closer to uncertain optimism than outright fear.

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Market capitalization under pressure

Due to the recent price drop of cryptocurrencies, their total market capitalization has logically decreased. According to data from TradingView, the total market capitalization of cryptocurrencies fell by $183 billion in a single day, representing a significant shock to investors. Although there was a slight rebound afterward, the overall weekly trend remains negative. Over the past 7 days, the crypto market has lost approximately $255 billion, indicating increased volatility and uncertainty among traders.

However, it is important to emphasize that despite these losses, the market capitalization of cryptocurrencies is still near its historical high. This was achieved on August 14, 2025, when the capitalization reached $4.17 trillion. This achievement is currently overshadowed by other assets, such as gold and stocks, which continue to break records. On the other hand, cryptocurrencies have been experiencing a decline in recent weeks.

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