Total crypto market capitalization has fallen from a $4.27 trillion peak in October 2025 to approximately $2.1-2.3 trillion in August 2026. The second quarter saw market cap drop 12.6%, extending a three-quarter bearish trend.
The Federal Reserve held rates steady on July 29, 2026, signaling caution. Meanwhile, US GDP growth slowed to 1.5% in Q2 2026, below expectations. This macro uncertainty is weighing on risk assets including crypto.
Bitcoin's low volatility near $63,500 is seen by some analysts as a potential breakout signal, while others view it as capitulation before a deeper drop. Ethereum near $1,912 shows similar hesitation.
XRP has fallen below $1 for the first time since November 2024, signaling deep weakness in altcoins. Solana (SOL) holds around $76 with modest gains. These moves suggest broad-based risk-off sentiment, not just Bitcoin weakness.
If Bitcoin holds $60,000, the bear case weakens and a bottom is possible. A break below $60,000 could target $55,000 or lower. The next macro catalyst will likely come from Fed policy signals or corporate earnings in September.
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