NEW YORK — The global cryptocurrency market contracted by approximately 1.9% over the past 24 hours, bringing its total market capitalization to an estimated $3.79 trillion, according to data reported by CoinGecko on Tuesday, August 26, 2025. The decline, driven by widespread sell-offs in major cryptocurrencies, underscores persistent volatility as investors grapple with macroeconomic uncertainties and shifting sentiment.
Bitcoin, the largest cryptocurrency by market cap, fell 1.4% to $113,800, while Ethereum dropped 0.55% to $4,779.17, per CoinGecko. Other major coins like BNB and XRP saw losses of 1.27% and 0.13%, respectively, reflecting a broader market pullback. The 24-hour trading volume reached $173.26 billion, a 44.9% decline from the previous day, signaling reduced market activity amid cautious investor behavior.
Analysts point to several factors fueling the downturn. “Market sentiment is bearish as traders eye support levels between $110,000 and $108,000 for Bitcoin,” a BlockBeats analyst noted, citing expectations of a Federal Reserve rate cut in mid-September. Recent posts on X highlight mixed sentiment, with some users anticipating a rebound driven by potential policy shifts, while others warn of further declines if key support levels break. The Crypto Fear & Greed Index, reported by Binance, stands at 43, indicating a neutral but cautious market mood.
Key market highlights include:
- Bitcoin’s market dominance holds at 54.9%, with a $2.29 trillion market cap.
- Ethereum’s trading volume hit $27.28 billion, down from recent highs.
- Notable gainers like OGN (up 30%) and MEME (up 16%) bucked the trend.
The contraction follows a volatile period for cryptocurrencies, spurred by President Trump’s tariff threats and concerns over Federal Reserve independence. Investors are also reacting to regulatory developments, including a proposed U.S. crypto market structure bill expected by Thanksgiving. While some analysts see the dip as a buying opportunity, others caution that macroeconomic pressures, including rising U.S. tariffs and a stronger dollar, could prolong the downturn. As the market awaits clearer signals from the Fed’s September 16-17 meeting, the crypto sector remains on edge, with potential for both recovery and further losses.
