The cryptocurrency market is experiencing a downturn on August 12, 2025, with the AI sector leading the losses. The sector has dropped 7.20%, driven by significant declines in Virtuals Protocol, ai16z, and Fartcoin. Bitcoin has fallen over 2%, trading at $118,000 after briefly exceeding $122,000, while Ethereum has decreased by 0.70% to below $4,300. Despite the overall bearish trend, some tokens like SOON and Pump.fun have bucked the trend, posting double-digit gains. The market's mixed performance highlights the volatility and sector-specific dynamics within the cryptocurrency space.