ADA, DOGE Lead Crypto Losses as BTC Traders Fear Pullback to $100K
Cardano, Dogecoin Lead Cryptocurrency Declines Amid Bitcoin’s Potential Retreat Toward $100K
Sentiment turned bearish rapidly following consecutive record peaks, compelling traders to refocus on broader economic challenges.
By Shaurya Malwa|Edited by Parikshit MishraUpdated Aug 20, 2025, 6:04 a.m. Published Aug 20, 2025, 5:56 a.m.
Key highlights:
- Bitcoin and Ethereum faced downturns as investors cashed in gains against macroeconomic strains and speculative trading activity.
- Bitcoin dipped beneath critical technical levels, sparking worries of a prolonged market slump.
- Unfavorable U.S. inflation figures reduced hopes for interest rate reductions, contributing to digital asset declines.
In this article
BTC$114,023.46◢0.19%
XRP$2.9700◢5.05%
DOGE$0.2220◢5.10%
Bitcoin and Ethereum (ETH) saw profit-taking activity within a day of reaching historic price levels, compounded by macroeconomic uncertainties and heightened trading leverage.
Bitcoin retreated to $113,500, marking a daily decline exceeding 1.5%. Observers highlighted structural vulnerabilities, noting its descent below crucial technical supports that previously fueled upward momentum.
“Bitcoin dropped to $114,700, revisiting prices from mid-August and breaching its intermediate support line—the 50-day moving average. This shift fuels concerns about broader market turbulence, possibly dragging valuations toward $100,000 near the longer-term 200-day MA,” explained Alex Kuptsikevich, FxPro’s lead analyst.
“The total crypto market valuation decreased 0.4% to $3.87 trillion. As markets test prior support-turned-resistance zones, participants fear a steeper pullback to $3.6 trillion,” he continued.
Ether decreased 1.8% to $4,159, now 12% below its recent high. The Ethereum network’s token is challenging the $4,100 threshold, which has limited its advances since spring.
XRP fell 4.1% to $2.89, followed by Dogecoin sliding 2.4% to $0.2143. Cardano’s ADA led losses among top assets, dropping 6.6%.
Market Sentiment Shifts Sharply
Optimism evaporated swiftly after successive record-setting sessions as traders confronted renewed macroeconomic realities. Upward inflation trends in the U.S. diminished prospects for imminent monetary easing, triggering sell-offs among speculative positions.
“Bitcoin continues its mild correction after achieving recent historic highs,” noted Joel Kruger, LMAX Group’s strategist, via communication.
“Market direction has been influenced by unexpectedly high U.S. price growth metrics, tempering predictions for Federal Reserve rate reductions.”
Ethereum mirrored Bitcoin’s downturn as traders exited leveraged positions. Despite this, persistent institutional interest—visible through ETF inflows and corporate treasury purchases—suggests current weakness may be short-lived.
“Ethereum followed Bitcoin’s downward trajectory as participants secured profits post-rally. Sustained institutional engagement signals potential mid-term recovery, supported by regulated financial product adoption,” Kruger stated.
Institutional capital inflows continue stabilizing sentiment despite spot market instability. Major investors maintain significant allocations, reflecting confidence in cryptocurrency fundamentals.
Derivative markets’ record-high exposure, however, elevates risks of amplified price fluctuations.
“Historic futures market activity demonstrates extreme leverage within crypto markets,” remarked Ryan Lee, Bitget’s principal analyst, via Telegram.
“While leverage magnifies profits during uptrends, it equally exacerbates volatility—heightening BTC and ETH’s susceptibility to abrupt shifts in market psychology,” Lee explained.
Markets now await guidance from Federal Reserve leadership at the Jackson Hole symposium, which may influence global asset valuations across equities, currencies, and cryptocurrencies.
Read more: Bitcoin, Stocks Hit By $400B Liquidity Drain From U.S. Treasury Account, Not Jackson Hole: Analysts
