券商中国·2025-08-18 13:49Core Viewpoint - The cryptocurrency market experienced a significant downturn on August 18, with Bitcoin dropping below $115,000 and Ethereum falling over 6%, leading to a total market capitalization decline to below $4 trillion [1][2]. Market Performance - Bitcoin's price fell nearly 3% to $114,932.8, while Ethereum dropped over 6% to $4,260.74. Other cryptocurrencies like Solana and Cardano also saw declines exceeding 6% [2][3]. - The total market capitalization of cryptocurrencies is reported at $3.88 trillion, reflecting a substantial decrease [2]. Liquidation Events - Over the past 24 hours, more than $551 million in cryptocurrency contracts were liquidated, affecting over 130,000 traders. The majority of liquidations were from long positions, totaling approximately $482 million [3][4]. Influencing Factors - Analysts attribute the recent market decline to multiple factors, including profit-taking by investors, weakened expectations for Federal Reserve interest rate cuts, and comments from U.S. Treasury Secretary Janet Yellen that impacted market confidence [1][6]. - The recent inflation data in the U.S. has led to a cautious investor sentiment, reducing hopes for significant interest rate cuts by the Federal Reserve [6][7]. Institutional Behavior - Despite the downturn, there is evidence of capital rotation rather than a complete exit from the market. Funds have been flowing from certain Bitcoin ETFs while others continue to attract investments [4][5]. - The Treasury Secretary's comments regarding the U.S. government's stance on Bitcoin purchases have also influenced market sentiment, although subsequent clarifications softened the initial impact [5][6].