TLDR
- Crypto market experiencing sideways movement with weak trading volume as investors wait for Fed signals
- Bitcoin drops 1% to $112,976, approaching key support level at $111,961 with potential drop below $110,000
- Bitcoin and Ether ETFs see over $500 million in outflows each, showing reduced institutional interest
- PUMP coin falls 7% as worst daily performer amid broad market retreat
- Federal Reserve Chair Jerome Powell’s Jackson Hole speech today creates uncertainty about future interest rates
The cryptocurrency market faces downward pressure on August 22, 2025, as investors adopt a cautious stance ahead of Federal Reserve Chair Jerome Powell’s highly anticipated speech at the Jackson Hole Economic Symposium. The total crypto market capitalization continues trading sideways between $3.73 trillion and $3.85 trillion.
Bitcoin has declined 1% to $112,976 over the past 24 hours. The leading cryptocurrency’s daily trading volume has dropped 11%, reflecting weakening investor interest and reduced market participation.
The simultaneous decline in both price and volume indicates fading buy-side pressure in the Bitcoin market. This pattern typically signals reduced conviction from both buyers and sellers during periods of market uncertainty.
Bitcoin now trades close to its key support level at $111,961. A break below this critical floor could trigger a deeper correction, potentially pushing the price under $110,000.
The Average True Range indicator on Bitcoin’s daily chart shows declining volatility since August 15. This technical measure confirms the market has entered a consolidation phase where momentum stalls.
ETF Outflows Signal Institutional Retreat
Bitcoin and Ether exchange-traded funds experienced substantial outflows this week. Both asset classes saw over $500 million in net outflows, reflecting diminished institutional appetite for crypto exposure.
These outflows amplify the current price downturn. Institutional investors appear to be taking profits and reducing risk exposure ahead of potential Federal Reserve policy changes.
The ETF outflows coincide with broader risk-off sentiment across financial markets. Technology stocks and equity markets are also under pressure as investors seek safer assets.
Fed Policy Uncertainty Drives Market Sentiment
Recent Federal Reserve minutes and central bank commentary suggest a likely delay in interest rate cuts. This development has forced investors to recalibrate their expectations for monetary policy.
The prospect of higher interest rates for longer periods typically reduces demand for speculative assets like cryptocurrencies. Investors often move capital to safer, yield-bearing instruments when rates remain elevated.
Powell’s Jackson Hole speech carries particular weight for crypto markets. Any signals about future monetary policy direction could trigger sharp price movements in either direction.
Technical Pressures Mount
Bitcoin faces critical technical levels with large liquidity clusters around $113,000 and $111,000. If these major price levels break, forced selling and cascading liquidations could trigger sharp downward moves.
Long-term Bitcoin holders have begun selling positions after July’s price highs. This profit-taking behavior historically creates bearish pressure during periods of macroeconomic uncertainty.
The Department of Justice’s acting Criminal Division chief recently suggested the department will not bring similar charges against software developers. This statement indirectly references the Roman Storm case, which drew widespread sympathy from government circles.
Coinbase announced plans to list USD1, the stablecoin issued by World Liberty Financial. The exchange’s decision follows yesterday’s minting of over $200 million worth of USD1 tokens.
Final Thoughts
For investors asking “why is crypto crashing today,” the answer lies in Federal Reserve policy uncertainty and institutional retreat from digital assets. The combination of ETF outflows, declining trading volumes, and anticipation of Powell’s Jackson Hole speech has created a perfect storm of selling pressure across cryptocurrency markets.
