The cryptocurrency market confronted a extreme correction on August 1, 2025, with over $700 million in liquidations recorded in simply 24 hours throughout Bitcoin and different main property.
According to Coinglass, lengthy positions accounted for $707 million, highlighting the brutal wipeout of bullish bets throughout Bitcoin (BTC), Ethereum (ETH), Solana (SOL), Cardano (ADA), Dogecoin (DOGE), and others.
Total market capitalization plummeted 3.95% to $3.7 trillion, whereas Bitcoin dropped 3.1% to $114,892and Ethereum sank 6.1% to $3,620. Altcoins noticed deeper cuts—Cardano fell 8.5%, XRP slid 7.5%, and Solana misplaced over 6.9%. The Crypto Fear and Greed Index dropped to 60, signaling weakening investor confidence.
BTC's worth report a dump on low timeframes as per the each day chart. Source: BTCUSD on Tradingview
U.S. Tariffs and Fed Policy Spark Risk-Off Sentiment in Bitcoin and Altcoins
The sell-off coincides with new U.S. tariffs and the Federal Reserve’s hawkish financial stance. President Trump’s administration applied tariffs of as much as 50% on key supplies, escalating world commerce tensions.
The Fed additionally held rates of interest regular at 4.25–4.50% for the fifth time, signaling extended high-rate situations that dampen danger urge for food.
These developments triggered a retreat from speculative property like crypto. The crypto market’s relative power index (RSI) fell to 35.4, and whole open curiosity dropped 3% to $193 billion, indicating a broader market weak point.
Whale Movements and Crypto Liquidations Deepen the Pain
On-chain exercise has added to the anxiousness. Five dormant Bitcoin miner wallets from 2010 all of the sudden moved 250 BTC (≈$30M), sparking issues about impending promote strain. Meanwhile, short-term holders proceed to capitulate, promoting BTC at a loss.
High-profile liquidations added to the drama. Prominent dealer AguilaTrades reportedly misplaced almost $40 million on Hyperliquid after a leveraged BTC place collapsed. Other high-risk gamers, together with James Wynn, additionally confronted multi-million-dollar liquidations.
In distinction, savvy merchants like 0xCB92 profited by shorting ETH with 20x leverage, incomes over $3.7 million, underscoring the acute volatility and high-stakes nature of the present market.
Despite the chaos, long-term investor sentiment stays watchful however intact. Still, with macro headwinds, whale pockets actions, and leverage-based volatility, the highway forward stays rocky for crypto bulls.
Cover picture from ChatGPT, BTCUSD chart from Tradingview
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