Bitcoin, Ethereum, XRP Prices Sink: $900M Crypto Liquidations Triggered by US Tariffs & Weak Jobs Data | August 2025 Market Analysis
Bitcoin, Ethereum, XRP Prices Sink: $900M Crypto Liquidations Triggered by US Tariffs & Weak Jobs Data | August 2025 Market Analysis
Key Takeaways
- Over $900 million in crypto positions liquidated in 24 hours, mostly long bets
- Bitcoin down 5.6% to $113,411, Ethereum tumbles 10.5% to $3,518, XRP drops 10.2% to $2.98
- Macro triggers include Trump tariffs, weak jobs data, and Fed rate uncertainty
- $7 billion in Bitcoin and Ethereum options expiries intensified selling pressure
- Institutional investors pulled $114.8 million from spot Bitcoin ETFs
- Technical indicators suggest possible oversold conditions despite bearish charts
The Friday Bloodbath
The screens flashed red. Every trader saw it coming but nobody moved fast enough. Bitcoin bled out at $113,411, down 5.6% from its $120,000 perch earlier this week . Ethereum got hit worse, tumbling 10.5% to $3,518. XRP mirrored the descent, shedding 10.2% to kiss $2.98 goodnight . CoinGlass numbers told the real story: $905 million evaporated from leveraged positions in 24 hours. Eighty-three million in short bets got crushed, but the real carnage was in long positions, $823 million vaporized by margin calls .
Some desk jockey at a midtown hedge fund probably choked on his bourbon when that $13.79 million ETH liquidation hit Binance’s books . Across town, 200,000 traders watched their accounts implode.
Cryptocurrency Liquidation Snapshot (August 1-2, 2025)
Whale Watching and the Margin Call Massacre
Liquidations work like a butcher’s cleaver, no finesse, just force. Existence stops when prices hit predetermined levels. Positions get automatically closed. No appeals. This time, the algorithms feasted on overleveraged gamblers betting on endless green candles .
Whales played both sides. One insider got obliterated, $17.11 million vanished on a 40x leveraged Bitcoin short and 25x Ethereum play . The Coinbase Premium Gap turned negative. That’s institutional-speak for "smart money’s bailing" . Asian traders piled on shorts too, the Kimchi Premium staying negative like bad kimchi left in the sun .
Glassnode’s data showed the wound: over 90% of Bitcoin’s supply still sat in profit. That’s trouble. When everyone’s winning, they cash out. The Cumulative Mean +1 Standard Deviation level hit 91%, a neon exit sign .
The Macro Guillotine
Friday morning’s jobs report landed like a coffin dropping. Seventy-three thousand jobs added, weak enough to get some Labor Department suit fired within hours . Trump’s new tariffs sliced deeper: 50% on imported copper, 200% on foreign pharmaceuticals . Markets hate uncertainty. This was a grenade in a phone booth.
Then came the nukes. Literally. Trump announced nuclear submarines prowling Russian waters, retaliation for some Kremlin tough talk . Geopolitics met crypto volatility.
The Fed didn’t help. Powell held rates at 4.25-4.50%, muttering about tariffs fueling inflation . Traders checked the CME FedWatch Tool: only one lousy 25-basis-point cut expected by December . Bonds became more attractive than digital fairy gold.
Charts Don’t Lie (Until They Do)
Bitcoin’s technicals screamed bear. The daily chart showed the Relative Strength Index (RSI) plunging below the midline, trader code for "not oversold yet" . The MACD indicator’s sell signal glowed like a bar sign at last call. Next support? $112,000. Then maybe $107,000 .
Ethereum confirmed a "death cross" on its hourly chart. Sounds biblical because it is, the 50-day moving average crossed below the 200-day. Ominous for the medium term . ETH’s RSI hit 22 though. That’s oversold territory. Like finding a twenty in a gutter puddle .
XRP flirted with disaster below $3.00. Its MACD curled downward like a dead man’s finger. Support waited at the 50-day EMA ($2.77) and 100-day EMA ($2.56). Resistance camped out at $3.32 .
August’s Grim Reaper
August treats crypto like a stepchild. Bitcoin hasn’t seen a green August since 2021 . Ethereum’s track record looks equally pathetic, three straight years of red . XRP follows the same cursed calendar.
This year promised different. Trump’s election sparked a 400% XRP rally in weeks . Regulatory clouds parted after Ripple’s legal wins. Spot XRP ETF chatter grew, WisdomTree joined Bitwise, 21Shares, and Canary Capital in the SEC approval queue .
Then August hit. Like a humid New York sidewalk, history repeats. The Crypto Fear & Greed Index dropped from 72 to 65 in hours . Greed faded to fear. Always does here.
The Institutional Exodus
Wall Street’s crypto love affair hit a rough patch. Spot Bitcoin ETFs bled $114.8 million in a day . Fidelity’s FBTC lost $53.6 million. ARK 21Shares’ ARKB hemorrhaged $89.9 million . Even Grayscale’s GBTC leaked $9.2 million. Only BlackRock’s IBIT saw inflows, a measly $18.6 million life raft .
CoinShares data confirmed the rot: $175 million total outflows from Bitcoin funds globally . Institutions weren’t just taking profits, they were running. Rotating capital into bonds, maybe real estate. Anything not chained to crypto’s sinking ship.
Trader Psychology: From Greed to Desperation
Ninety percent of Bitcoin holders still sat on profits. That’s a problem. Human nature says cash out when you’re up. Glassnode’s metric flashed 91% on the Cumulative Mean +1 Standard Deviation, a classic "sell" signal .
Myriad users polled showed bizarre optimism though. Fifty-three percent still bet Bitcoin would hit $125,000 before crashing to $105,000 . Gamblers always double down before admitting defeat.
Whales played their part. Ethereum’s mega-whales boosted holdings by 9.31% recently . They buy when blood’s in the water. Always have.
The Silver Linings Playbook
RSI numbers hinted at relief. Bitcoin’s dipped below 30. Ethereum’s hit 22 . That’s oversold territory. Doesn’t guarantee a bounce, but it’s like seeing a vulture leave a carcass, worst might be over.
XRP fundamentals still sparkled beneath the grime. Ripple signed more U.S. deals post-election than in the prior six months . Their stablecoin RLUSD neared launch, a potential "accelerant" for the XRP Ledger .
Analysts whispered about Bitcoin bottoming at $80,000 by September before a Q4 surge . Same old song. Crypto’s always one comeback away from glory.
Frequently Asked Questions
How much was liquidated in the crypto market crash?
Over $900 million in leveraged positions got liquidated August 1-2, 2025, with $823 million being long bets .
What caused Bitcoin, Ethereum and XRP to drop?
Three triggers: weak U.S. jobs data, new Trump tariffs, and $7 billion in Bitcoin/Ethereum options expiries. Geopolitical tensions with Russia amplified the selloff .
Did institutional investors sell Bitcoin?
Yes. Spot Bitcoin ETFs saw $114.8 million in outflows, led by Fidelity and ARK 21Shares. Global Bitcoin funds lost $175 million total .
What’s the outlook for August?
Historically bearish, Bitcoin hasn’t had a positive August since 2021. Technicals suggest possible drops to $107,000 for BTC and $3,500 for ETH before stabilization .
Are any cryptocurrencies oversold now?
Ethereum’s RSI hit 22 and Bitcoin’s fell below 30, both technically oversold. However, macro uncertainty could delay any rebound .
Citing My Link Sources:
- https://finance.yahoo.com/news/bitcoin-ethereum-xrp-sink-crypto-205949199.html
- https://www.ainvest.com/news/bitcoin-news-today-bitcoin-ethereum-plunge-rate-uncertainty-options-expiries-2508/
- https://www.thecoinrepublic.com/2025/08/01/crypto-market-crash-why-btc-eth-xrp-sol-doge-memecoins-are-falling-today/
- https://www.fxstreet.com/cryptocurrencies/news/crypto-today-could-bitcoin-ethereum-xrp-flip-the-historically-bearish-august-trend-to-bullish-202508011202
- https://economictimes.indiatimes.com/crypto-news-today-live-01-aug-2025/liveblog/123028555.cms?from=mdr
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