Bitcoin Dips Below $115,200 Amid U.S. Tariff Concerns; Ethereum, Solana, Dogecoin See Losses Up to 8%
By Navdeep Singh, ETMarkets.com | Updated: Aug 01, 2025, 01:16 PM IST
The global cryptocurrency market experienced a notable downturn on Friday, as Bitcoin slipped below the $115,200 threshold in response to fresh U.S. tariffs and a wave of profit-booking that rattled investor sentiment. Major altcoins including Ethereum, Solana, and Dogecoin also suffered significant losses, with some falling by as much as 8%.
Bitcoin, Ethereum, and Major Altcoins Tumble
As of 12:30 PM IST, Bitcoin was trading around $115,149, reflecting a 3% decline from its previous levels. Ethereum registered a sharper drop, down approximately 5.5% to trade near $3,663, according to data from CoinMarketCap. The total global cryptocurrency market capitalization contracted by 3.82%, landing at about $3.75 trillion, underscoring a broad "risk-off" sentiment across the market.
Other major altcoins also saw steep declines: XRP and Solana shed over 6%, while Dogecoin, Cardano, Hyperliquid, Stellar, Sui, and Chainlink experienced losses ranging between 7% and nearly 10%.
Market Liquidations Surge Amid Volatility
The downturn triggered significant liquidations in the cryptocurrency market, with over $630 million in leveraged positions being liquidated within a 24-hour period. Most of these were long positions caught off guard by a sharp intraday reversal, as per Vikram Subburaj, CEO of Giottus.
“Bitcoin slid 3% to trade near $115,300 as fresh US tariffs and a major profit-taking wave put pressure on crypto,” Subburaj commented. He highlighted $115,000 as a key support level, stating, “As long as BTC holds this level, the broader uptrend is intact. Heatmaps reveal heavy short interest above $120,000 and long liquidation zones just below $115,000. Should sellers drive prices further down, the $111,000–$115,000 range will become a crucial battleground for potential bouncebacks.”
Data from Coinglass confirmed that nearly 90% of the $630.68 million total liquidations were from long positions, attributing the sell-off primarily to macroeconomic concerns tied to recent U.S. tariff announcements and fears of slowing growth.
Analysts Point to Tariffs and Macroeconomic Fears
Riya Sehgal, Research Analyst at Delta Exchange, explained, “The nearly 3% dip in the global market cap is mainly driven by the Fed’s warning on slowing growth and new trade tariffs.” However, she added a note of optimism, saying, “Despite the drop, Bitcoin closed July above $115,000—its highest monthly close ever—demonstrating long-term resilience.”
Sehgal also pointed to the Bitcoin options market as showing a cautiously optimistic outlook, noting “A Put-Call Ratio of 0.65 and visible call buildup between $116K–$120K indicate bullish expectations, while the unwinding of puts near $109K–$111K signals weakening bearish sentiment.”
Ethereum Rebounds on ETF Inflows and Retail Support
Ethereum briefly fell to $3,600 during the downturn but rebounded swiftly to above $3,700. This recovery was supported by retail investors seizing dip-buying opportunities and sustained inflows into spot Ethereum ETFs, which have accumulated assets totaling $21.85 billion.
The CoinSwitch Markets Desk remarked, “ETH is holding ground around $3,700 despite a 5% decline. Momentum may return if Bitcoin reclaims the $116,100–$116,200 range.” They also highlighted the growing interest in stablecoins, citing Tether’s robust Q2 profit of $4.9 billion alongside improving regulatory clarity in the United States.
Long-Term Outlook Remains Bullish Despite Short-Term Volatility
Although markets showed sharp short-term volatility, many analysts remain positive about the long-term prospects for cryptocurrencies. Parth Srivastava, Head of Quant at 9Point Capital, stated, “Bitcoin remains in a healthy buy-the-dip zone. Institutional demand continues to absorb supply, and we anticipate consolidation phases leading to a fresh breakout as we head into the fourth quarter.”
Summary
- Bitcoin dropped below $115,200 amid fears over U.S. tariffs and profit-taking, triggering $630 million in liquidations.
- Ethereum fell over 5%, briefly touching $3,600 before recovering above $3,700 supported by ETF inflows.
- Other major altcoins such as Solana, Dogecoin, and XRP experienced losses ranging from 6% to nearly 10%.
- Analysts see the current dip as a short-term correction, with key support levels holding and institutional demand offering underlying strength.
- The crypto options market signals cautious optimism, reflecting expectations of a potential rebound.
As geopolitical tensions and macroeconomic indicators continue to influence market sentiment, cryptocurrency investors are advised to remain vigilant but also recognize the underlying long-term bullish factors driving demand in the space.
Disclaimer: The views expressed in this article are those of the market experts cited and do not represent those of The Economic Times.
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