Bitcoin Plummets While Altcoins Defy Gravity: A Crypto Market Paradox in August 2025
The crypto market's split personality is on full display this week—BTC tanks while alts soar. Here's why traders aren't panicking (yet).
King Crypto Stumbles
Bitcoin's brutal 15% nosedive since Monday caught HODLers off guard—the deepest weekly drop since the 2024 halving frenzy. Mining rewards just got 40% harder to profit from, and institutional whales are dumping Grayscale shares like last year's metaverse portfolios.
Altseason's Revenge
Meanwhile, Ethereum and Solana are mooning on pure hopium—DeFi TVL just pierced $90B again despite BTC's woes. Even meme coins are flipping BTC pairs, proving once again that crypto markets run on vibes, not fundamentals (sorry, SEC).
The Silver Lining Playbook
Veterans see this as healthy rotation—not capitulation. 'BTC dominance below 45% always triggers alt rallies,' notes QCP Capital's trading desk. And let's be real—after three straight months of ETF inflows, Wall Street was due for a 'risk-off' tantrum. The real test? Whether Tether's printers can keep up with the leverage demand.
Cynic's corner: Nothing boosts altcoin volume like Bitcoin fear—just ask the VC funds quietly dumping their seed-round bags.
The crypto market has recently witnessed a significant downturn in Bitcoin’s ($BTC) price, while the altcoin sector is strong. As per the exclusive market data, the total crypto market capitalization has slipped below $4T, reaching $3.97T after a 2.22% decrease over 24 hours.
However, the 24-hour crypto volume has jumped by 13.80%. At the same time, the Crypto Fear & Greed Index still stands in the “Greed” territory while accounting for 60 points.
Bitcoin Drops by 2.74% and Ethereum Sees 0.60% Dip
Particularly, the price of Bitcoin ($BTC) has slumped to $118,813.15. This denotes a 2.74% decrease over past 24 hours. In addition to this, the market dominance of Bitcoin ($BTC) stands at 59.7%. Similarly, ethereum ($ETH) has seen a slight 0.60% slump to touch $4,298.55 in price. Along with that, a significant increase has taken place in Ethereum’s market dominance, which now accounts for 13.1%.
$SWOL, $PUMP, and $MUBARAK Lead Crypto Gainers
Concurrently, Snowy Owl ($SWOL), [Fake] PUMP FUN ($PUMP), and Mubarak ($MUBARAK) are the dominant crypto gainers of the day. In this respect, $SWOL has jumped by a staggering 1116.31% to attain the $0.00001814 mark.
After that, $PUMP is now hovering around $0.0006783, displaying a 506.37% rise. Subsequently, $MUBARAK’s 311.88% upsurge has raised its price to $0.009733.
DeFi TVL Plunges by 0.06% and NFT Sales Volume Records 31.34% Slump
Simultaneously, the DeFi TVL has gone through a minor 0.06% dip to reach $150.238B. In the same vein, the top DeFi player in terms of TVL, AAVE, has also witnessed a 0.52% plunge. Nevertheless, when taking into account the 1-day TVL growth, Reservoir has gained the top position, accounting for 86513% over 24 hours.
Apart from that, the NFT sales volume has also decreased by 31.34% to claim the $17,916,786 spot. Additionally, the top-selling NFT collection, CryptoPunks, has experienced a 57.37% decline, reaching $1,936.471.
Sharplink Gaming Secures $400M to Boost ETH Holdings, U.S. Court Orders Do Kwon to Testify
Overall, several other noteworthy developments have occurred in the crypto industry. In this respect, Sharplink Gaming has collected $400M to bolster $ETH holdings above $3B.
Moreover, the U.S. court of the Southern District of New York has instructed Do Kwon (the co-founder of Terraform Labs) to give a complete statement regarding the guilty plea. Furthermore, a wallet controlled by Alameda Research has unstaked approximately 190,821 $SOL after cold storage since late 2020.
