A significant correction in August 2025 saw the total crypto market cap fall below $4 trillion, primarily driven by declines in Bitcoin and Ether prices following key U.S. policy changes. This market shift was triggered by U.S. Treasury statements and the halt of new government Bitcoin purchases, affecting investor confidence and leading to panic selling across several altcoins. 2025’s correction follows previous post-halving cycles where Bitcoin has historically rallied mid-year but then faced a significant crash in September, according to industry analysts like Benjamin Cowen. The U.S. Treasury’s decision not to purchase additional Bitcoin for its strategic reserve and the subsequent announcement by Secretary Scott Bessent of halting such purchases contributed significantly to market volatility. 963 million USD worth of crypto assets were liquidated as a result of these policy changes. Companies holding large amounts of cryptocurrency, particularly those with public holdings in Solana and Metaplanet, faced pressure on their valuations. These moves impacted the overall market sentiment and led to the significant decline in Bitcoin’s price from $115,000 to $115,000, while Ether fell to $4,300. This trend was further amplified by the sell-off of altcoins like Solana and Toncoin, reflecting heightened market uncertainty. The CoinGecko update has provided a detailed view of these trends. The long-standing pressure on corporate treasuries, coupled with investor caution, underscores potential regulatory implications for the cryptocurrency market.