Why Is Crypto Down Today? – August 12, 2025

Key Points

1. The cryptocurrency market capitalization decreased by 2.5% to $4.04 trillion, with most top 100 coins turning red; BTC fell below $122,000, while ETH remained stable at $4,292.

2. US ETH ETFs saw a record-breaking $1.02 billion in inflows, while US BTC spot ETFs recorded $178.15 million in inflows, with BlackRock leading the inflows.

3. Alice Liu, Head of Research at CoinMarketCap, highlighted three US-related factors heavily impacting crypto: economic data/Fed decisions, Donald Trump-related news, and CPI data, which could trigger Bitcoin's next all-time high.

4. Concerns over Bitcoin centralization by BlackRock and MicroStrategy were noted, with Metaplanet increasing its BTC holdings to 18,113 BTC as part of its long-term investment plan.

5. Market sentiment dropped slightly, with ETH outperforming BTC in weekly and monthly gains, and traders anticipating volatility due to CPI data and derivatives activity.