Market Digest: Bitcoin Dips to 113K amid Ukraine Talks and Fed Caution

Key Takeaways

Trump and EU leaders explored Ukraine security guarantees while signaling potential talks with Putin.
S&P affirmed the U.S. rating at AA+, though housing data signaled further weakness.
Nasdaq underperformed after steep losses in Nvidia and Palantir, while oil and silver fell and gold hovered lower.
Despite diplomatic progress, crypto markets tumbled, with Bitcoin under $113k and Ethereum sliding over 4%.

Geopolitics & Market Sentiment

On August 19, 2025, markets showed a mixed tone as investors weighed geopolitical optimism against caution over Federal Reserve policy ahead of the Jackson Hole Symposium.

On the diplomatic front, U.S. President Donald Trump joined European Union leaders, NATO Secretary General Mark Rutte, and Ukrainian President Volodymyr Zelenskiy in talks revolving around Ukraine’s security guarantees and laying groundwork for a possible summit with Russian President Vladimir Putin.

Trump said Washington would “try to work out a trilateral with the U.S., Ukraine, and Russia,” while warning that if Putin fails to cooperate, the situation could turn “rough.” The Kremlin confirmed that a recent Trump-Putin call centered on Ukraine and ongoing cooperation, though reports suggested Putin remains unwilling to give up occupied Ukrainian territory.

On the economic front, global rating agency Standard & Poor’s affirmed the U.S. sovereign rating at AA+/A-1+ with a stable outlook, while projecting slower growth ahead. Meanwhile, housing data underscored softness: the NAHB Housing Market Index slipped to 32, its lowest since 2022, though July housing starts improved.

Corporate earnings remained mixed: Home Depot missed estimates but kept its outlook, Palo Alto Networks raised guidance, and SoftBank’s $2 billion bet on Intel boosted sentiment.

Meanwhile, despite diplomatic progress, digital assets slumped amid heavy outflows and liquidations, with Bitcoin falling below $113,000, giving back recent gains from its $124K peak as profit-taking, Federal Reserve uncertainty, and leveraged position unwinds weighed.

During the initial dip, Spot Bitcoin ETFs saw net outflows of approximately $121.7 million, while Ethereum ETFs recorded massive outflows at roughly $197 million.

Ethereum dropped over 6%, Solana lost beyond 3%, with Bitcoin’s dominance edging up slightly toward 60%, as on-chain metrics revealed that wallets holding 10–10,000 BTC added around 20,000 BTC during the pullback, signaling long-term accumulation.

Price movements:

Global Indices

S&P 500 Index (SPX): 5,401.96 (-0.73%)
Dow Jones Industrial Average (DJI): 44,860.64 (-0.11%)
Nasdaq Composite Index (IXIC): 21,288.85 (-1.58%)
Nikkei 225 Futures (NK2251.D): 43,340.00 (-0.51%)
Euronext 100 Index (N100-D): 1,622.14 (+0.78%)
FTSE 100 (FTSE): 9,176.80 (+0.02%)

Cryptocurrencies

Bitcoin (BTCUSD): 112,895 (-2.90%)
Ethereum (ETHUSDT): 4,133.07 (-4.17%)
Binance Coin (BNBUSDT): 827.28 (-2.33%)
Solana (SOLUSDT): 176.57 (-3.48%)
Bitcoin Dominance (BTC.D): 59.91% (+0.26%)

Major Stocks

Nvidia (NVDA): 175.72 (-3.46%)
Tesla (TSLA): 328.64 (-1.95%)
Microsoft (MSFT): 508.78 (-1.61%)
Meta Platforms (META): 750.10 (-2.24%)
Apple (AAPL): 229.76 (-0.49%)
Amazon (AMZN): 227.25 (-1.83%)

Commodities

Silver (XAGUSD): 37.29 (-1.84%)
Gold (XAUUSD): 3,317.76 (-0.47%)
WTI Crude (USOIL): 61.94 (-1.04%)
Brent Crude (BRENT): 68.10 (-3.68%)

Forex

U.S. Dollar Index (DXY): 98.280 (+0.15%)
EUR/USD: 1.16437 (-0.14%)
GBP/USD: 1.34844 (-0.13%)
USD/JPY: 147.47 (-0.27%)

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