The cryptocurrency market took a sharp downturn on August 21, triggered by a $700 plunge in Bitcoin (BTC) during early Asian trading hours. Most digital assets lost between 2% and 8% of their value over the past 24 hours, dragging the total market capitalization of over 2,000 coins down to $263 billion. Volatility has been heightened for weeks, with prices swinging wildly.
Major Coins under Pressure: Bitcoin Below $10,200
Bitcoin is currently trading at $10,124, down 5.8% in 24 hours and 2% over the week. Its market cap stands at approximately $181 billion, representing 69% of the total crypto market. Among fiat trading pairs, the Japanese yen and US dollar dominate, while Tether (USDT) accounts for over 66% of all BTC trades.
Ethereum (ETH) trades at $185, down 5.8% today, with $7.4 billion in global volume. Ripple (XRP) has been relatively stable, trading at $0.26, down 3.3% in 24 hours and 4.9% for the week. Litecoin (LTC) is at $72, down 3.5% today but losing more than 8% this week.
Bitcoin Cash (BCH) Drops Over 8% This Week
Bitcoin Cash remains the fourth-largest cryptocurrency by market cap at $299, with a total valuation of $5.3 billion and daily trade volume of $1.39 billion. BCH is down 5% today and over 8% for the week. Daily transactions stand at around 43,000, consistent with the ~40,000 average since April. Tether accounts for 58% of BCH trades, followed by BTC (22.5%), USD (8.4%), ETH (6%), and KRW (2.5%).
Extreme Fear Grips Market Sentiment
The Crypto Fear & Greed Index plunged to 11 on Wednesday, firmly in 'extreme fear' territory (values 0-25), down from 39 ('fear') the previous day. Social media sentiment remains split. Trader Jacob Canfield commented on the charts, describing a “classic rising wedge that hit resistance,” and identified an ideal buy zone between $8,900 and $9,100 if support fails.
On the bearish side, Mark Mobius, founder of Mobius Capital Partners, labeled cryptocurrencies as “psycho currencies,” arguing that belief drives their value. Meanwhile, Henny Sender of the Financial Times wrote in Nikkei Asian Review that central banks are inadvertently driving demand for Bitcoin through competitive currency devaluation, calling crypto a safe-haven asset amid trade wars and slowing growth.
Despite the bloodbath, long-term holders remain cheerfully optimistic. Many view the correction as a buying opportunity, noting that on-chain data does not show a panic sell-off. The next key support level for Bitcoin is around $8,900–$9,100, and a failure to hold could trigger further downside. However, the overall trend for the month remains uncertain.