As of early evening on Aug. 12, Bitcoin (CRYPTO:BTC) fell 0.3% to $63,503.38, Ethereum (CRYPTO:ETH) gained 0.2% to $1,884.51, and Solana (CRYPTO:SOL) fell 0.4% to $75.80. The total crypto market cap dropped by 0.2% to $2.26 trillion.
Bitcoin rose above $64,000 in early trading today after U.S. Consumer Price Index data showed inflation slowing to 3.4% as expected, making a Federal Reserve rate hike less likely. However, the lead cryptocurrency failed to hold its gains, potentially because the slower inflation had already been priced in. The broader pressures of stalled crypto legislation, security fears, and sluggish institutional interest continue to weigh on the market.
Inflows to spot Bitcoin ETFs picked up this month, and the iShares Bitcoin Trust ETF (IBIT) saw around $50 million in inflows yesterday. That said, the prolonged crypto slump is starting to weigh on firms. For example, Bitwise Asset Management — which has crypto products and ETFs — has just cut 14% of its workforce.
Today's muted reaction to the inflation data is an indication that it will take a major catalyst to shake the industry out of its slump. Stablecoin growth has slowed, and the widely hoped-for legislative progress has stalled. However, for patient investors, cryptocurrency still has potential, especially as traditional finance integrates blockchain into payments and investments.
Not only has Bitcoin always recovered and gone on to set new highs, but its potential to underpin blockchain transactions could be extremely powerful. Crypto remains a risky investment, and it won't recover until there's a significant change in the economic climate or a dramatic shift in real-world asset tokenization or stablecoin adoption. Both could happen in time.
Ranked by market cap. Data: CoinGecko, as of August 12, 2026 20:17 UTC.
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Emma Newbery has positions in BNB, Ethereum, and Solana. The Motley Fool has positions in and recommends Bitcoin, Ethereum, Hyperliquid, Solana, XRP, and iShares Bitcoin Trust. The Motley Fool recommends BNB and TRON. The Motley Fool has a disclosure policy.
Crypto Market Today, Aug. 12: Bitcoin Slips Despite Cooling Inflation was originally published by The Motley Fool