Crypto Markets Continue to Slide as Geopolitical Uncertainty Weighs on Prices

Major digital assets extended their decline on Tuesday, Aug. 19, as investors weighed geopolitical uncertainty following President Donald Trump’s meeting with Ukrainian President Volodymyr Zelenskyy, just days after his talks with Russian President Vladimir Putin in Alaska.

Bitcoin (BTC) is currently trading at $113,000, down 2% on the day and nearly 5% over the past week. Meanwhile, Ethereum (ETH) is currently trading at $4,182, down 3.3% over the past day, which extends its weekly losses to just over 5%.

“The market has cooled after Bitcoin reached an all-time high near $125,000 last week, with Bitcoin currently hovering under $115,000,” Dom Harz, co-founder of BOB, said in comments shared with The Defiant. “This short-term correction is really just noise; a minor distraction from the fact that Bitcoin and, particularly Bitcoin DeFi, are undeniably rising.”

XRP fell 2.9% over the past 24 hours and 8.5% over the week to trade at $2.93. Solana (SOL) dipped by 2.7% and is currently trading at $184, leaving it flat over the past week.

The total cryptocurrency market capitalization dropped 2% over the past 24 hours to $3.91 trillion, according to CoinGecko. Bitcoin dominance is currently at 57.9% while Ethereum dominance stands at 12.9%.

Over the past 24 hours, about $382 million in crypto positions were liquidated, including $300 million of long positions and $82 million of shorts, per CoinGlass. Ethereum led with more than $137 million in liquidations, followed by Bitcoin at $80 million.

ETFs

Spot Bitcoin ETFs suffered $121 million in net outflows on Aug. 18, marking a second consecutive day of withdrawals.

Meanwhile, ETH ETFs also saw $196 million in net outflows on Monday. Cumulative net inflows stand at $12.47 billion, per SoSoValue.

Trump-Zelenskyy Meeting

Experts say the market drop reflects uncertainty over whether talks between President Trump, Ukrainian President Zelenskyy, and Russian President Putin will lead to a lasting cease-fire or broader peace agreement.

President Trump met with Zelenskyy and European leaders at the White House on Monday to discuss a possible end to Russia’s war in Ukraine. The meeting focused on what security guarantees the U.S. and Europe could offer Ukraine if a cease-fire is reached.

Trump also spoke with Putin to explore a direct meeting between Putin and Zelenskyy, though no date has been set, the New York Times reported. This came a few days after Trump and Putin held a nearly three-hour summit in Alaska on Friday to discuss a ceasefire in Ukraine, but no agreement was reached.

“The current landscape signals both ‘negotiation hopes’ and ‘military escalation’ risks, leaving investor sentiment cautious,” Bitunix analysts said in comments shared with The Defiant. “If talks progress, risk appetite may recover, supporting BTC’s challenge of the $119,000–121,000 resistance.”

Conversely, they noted that renewed conflict escalation would intensify volatility. “Investors are advised to focus on geopolitical developments, maintain cautious positioning, and avoid over-chasing short-term moves – approaching the market with a medium- to long-term perspective to navigate uncertainty,” they said.