Bitcoin, Ethereum, and XRP Fall Sharply as Crypto Liquidations Exceed $900 Million
August 1, 2025 – Leading cryptocurrencies Bitcoin, Ethereum, and XRP experienced notable declines on Friday, intensifying a days-long market slump that culminated in crypto liquidations surpassing $900 million. The widespread sell-off, fueled by a combination of geopolitical and economic tensions, has sent shockwaves through digital asset markets ahead of the weekend.
Sharp Declines Across Major Cryptocurrencies
Bitcoin, which flirted with the $120,000 mark earlier in the week, dropped approximately 5.6% to trade near $113,411 at the time of reporting. Ethereum saw a steeper downturn, declining nearly 10.5% from about $4,000 on Sunday to $3,518. XRP mirrored this pattern as well, falling from a peak of $3.32 last weekend to around $2.98, marking a 10.2% decrease.
This cascading price drop wiped out hundreds of millions of dollars in crypto derivative positions within just 24 hours. Data from CoinGlass indicates that roughly $905 million worth of positions were liquidated since Thursday evening, with the overwhelming majority—over $823 million—being long positions, reflecting bets anticipating rising prices.
Macro Political and Economic Factors Drive Market Downturn
Several overarching factors contributed to this market turbulence. Early Friday, the U.S. Labor Department released a jobs report that significantly underperformed expectations. The report was so poorly received that President Donald Trump dismissed the official responsible for its publication within hours.
Adding to the market pressure, the White House introduced a new set of sweeping tariffs targeting multiple countries, unsettling both on-chain and off-chain markets. Later the same day, President Trump announced the deployment of several nuclear submarines toward Russian waters after escalating tensions prompted threats from a senior Russian official. This geopolitical unrest further exacerbated investor uncertainty.
Market Sentiment and Analyst Perspectives
Analysts interviewed by Decrypt earlier this week attributed the price declines partly to an ongoing tug-of-war between cryptocurrency whales engaging in profit-taking and long-term holders maintaining their positions. Some market experts anticipate the downward trend may persist through August and September, with BTC potentially dipping as low as $80,000 before rebounding in the last quarter of the year.
Glassnode analysts warned last week that a fall below the $110,000 threshold could trigger accelerated sell-offs, a scenario that seemed to be unfolding as prices slid this week.
Despite the turmoil, optimism persists among some market participants. Polls from Myriad, a prediction platform affiliated with Decrypt’s parent company DASTAN, suggest that there is over a 53% chance Bitcoin could climb to a new peak of $125,000 rather than falling back to $105,000 in the near term.
Broader Market Impact
Other notable cryptocurrencies also faced pressure Friday, with major tokens such as Binance Coin (BNB) down 3.6%, Solana (SOL) off by 4.2%, and Dogecoin (DOGE) dropping more than 6%. The widespread declines indicate a broad-based shift in market sentiment amid a volatile global backdrop.
In Summary: The cryptocurrency market has been rattled by political conflicts, disappointing economic data, and aggressive tariff policies—all factors contributing to a significant sell-off and extensive liquidations. While some analysts foresee further declines in the short term, there remains cautious hope for a strong recovery before the end of the year.
Price data accurate as of August 1, 2025. Source: Decrypt.