Crypto Market Update August 13: Bitcoin Slips Despite Lower Fed Hike Odds but HYPE Defies Bearish Sentiment

The crypto market is down today, August 13, after Iran said that there is no progress in reviving the ceasefire deal with Iran. The geopolitical tensions have overshadowed the bullish outlook from a softer CPI print after easing US inflation reduced the odds of the Fed hiking rates in the September FOMC meeting to 33%.

Why is the Crypto Market Down Today?

The crypto market is dropping after Iran said that there is no progress made in negotiations to bring a permanent end to the war that started in February 2026, with the statement causing a bearish sentiment around risk assets.

Bitcoin (BTC) price is down by 0.76% today, August 13, to trade at $63,575 at the time of writing, while Ethereum (ETH) is also down by 1.33% to trade at $1,880.

Data from CoinMarketCap also shows that all of the top ten cryptos, apart from Hyperliquid (HYPE), are down today.

The US-Iran tensions are also outweighing the bullish outlook after the US inflation rate for July 2026 dropped to 3.4%, as reported earlier by CoinGape.

Prediction markets now show that there is only a 33% chance that the Fed will hike interest rates in September, with lower interest rates tending to push traders towards the crypto market.

Still, the demand for crypto ETFs remained muted even after the inflation data came out, with this lack of institutional demand also pushing the crypto market down today.