Cryptocurrencies Dive: Bitcoin, Ethereum, and XRP Plummet; Crypto Liquidations Exceed $900 Million
In a recent turn of events, the cryptocurrency market has experienced a downturn or a muted start to August 2025, with Bitcoin, Ethereum, and XRP all showing signs of volatility.
President Trump's decision to order multiple nuclear submarines towards Russian waters in response to threats made by a senior Russian official, coupled with the White House's levying of new sweeping tariffs at nations around the globe, has spooked both on- and off-chain markets. These geopolitical tensions have contributed to the crypto market's current state.
Bitcoin, the world's largest cryptocurrency, has seen a monthly rise, currently trading around $115,000, up 9%. However, it remains below its recent all-time high by about 4.7%, indicating some resistance and potential volatility in price trends.
Ethereum, the second-largest cryptocurrency, is showing a strong bullish structure and trading above key moving averages (20-, 50-, 100-day). However, the broader market sentiment remains cautious, casting a shadow over Ethereum's potential growth.
XRP, the third-largest cryptocurrency, has corrected to $2.92, with crucial support levels failing to hold. This could lead to further price declines in August 2025.
Analysts suggest a longer-term tug-of-war between profit-taking whales and long-term holders may be contributing to the current Bitcoin price woes. Some market participants remain optimistic that the price of Bitcoin is more likely to rise to a new peak of $125,000 than drop back down to $105,000.
The current factors affecting the price of Bitcoin, Ethereum, and XRP and causing a downturn or muted performance in the crypto market include macroeconomic uncertainty, key technical support levels failing, and market sentiment influenced by upcoming economic data releases.
Market sentiment and liquidity are being significantly influenced by a heavy macroeconomic calendar including jobs data, inflation reports, and expected remarks from the Jackson Hole symposium. These events often impact investors' risk appetite, thereby affecting crypto prices.
In a recent development, the U.S. Labor Department released a jobs report that underwhelmed expectations. This poor jobs report, along with the new tariffs and escalating tensions with Russia, have further contributed to the crypto market's downturn.
Over the past 24 hours, over $900 million in crypto derivative positions have been liquidated. Analysts anticipate that Bitcoin's price may continue to fall over August and September, potentially as low as $80,000, before surging back in Q4.
Predictors give the climb to $125,000 a more than 53% chance, as of this writing.
(Disclosure: Myriad is a product of DASTAN, Decrypt's parent company.)
\n\n [1] Glassnode analysts predict that should Bitcoin's price fall below $110,000 after recent surges, the drop could trigger an acceleration in sell-offs.
\n\n [2] Ethereum, while showing a strong bullish structure and trading above key moving averages (20-, 50-, 100-day), faces uncertainty as broader market sentiment remains cautious.
\n\n [3] Bitcoin, despite showing an overall rise for the month (trading around $115,000, up 9%), remains below its recent all-time high by about 4.7%, indicating some resistance and potential volatility in price trends.
\n\n [4] Bitcoin has fallen to $113,411, a drop of approximately 5.6% from its recent peak.
\n\n [5] Market sentiment and liquidity are being significantly influenced by a heavy macroeconomic calendar including jobs data, inflation reports, and expected remarks from the Jackson Hole symposium. These events often impact investors' risk appetite, thereby affecting crypto prices.
- The recent sell-offs in Bitcoin could be accelerated if its price falls below $110,000 after the previous surges, according to Glassnode analysts.
- Ethereum, despite showing a strong bullish structure and trading above key moving averages, faces uncertainty due to the cautious broader market sentiment.
- Bitcoin, currently trading around $113,411, has seen an overall rise for the month, up 9%, but remains below its recent all-time high by about 5.6%, suggesting some resistance and potential volatility.
- Cryptocurrency investors' risk appetite is being significantly influenced by a heavy macroeconomic calendar that includes jobs data, inflation reports, and expected remarks from the Jackson Hole symposium. Such events can impact both crypto prices and liquidity.
- In the crypto market, altcoins such as Ethereum and XRP are also experiencing volatility as they are impacted by not only on-chain factors but also geopolitical tensions and macroeconomic uncertainty.
