Bitcoin Slides Below $115,200 Amid US Tariffs Triggering Market Volatility; Ethereum, Solana, and Dogecoin Drop Up to 8%
By Navdeep Singh, ETMarkets.com | Updated: August 1, 2025, 01:16 PM IST
The cryptocurrency market faced a significant downturn on Friday as Bitcoin tumbled below the $115,200 threshold amid concerns over fresh US tariffs and a wave of profit-booking activity. This spurred widespread liquidations across the crypto sector, rattling market confidence and dragging major altcoins lower by as much as 8%.
Bitcoin’s Struggle and Market Liquidations
Bitcoin, the world’s largest cryptocurrency by market cap, was trading at approximately $115,149 as of 12:30 PM IST, down around 3% from recent highs. According to Vikram Subburaj, CEO of Giottus, the dip was largely pressure-triggered by the imposition of new US tariffs alongside aggressive profit-taking by investors.
“Over $635 million worth of leveraged positions were liquidated, primarily affecting long traders caught off guard by this sharp intraday reversal,” Subburaj said. He noted that Bitcoin’s $115,000 support level remains critical to sustaining its broader uptrend. Heatmaps indicate significant short positions building just above $120,000, while liquidation zones for longs are clustered below the $115,000 mark. Should the decline extend, the range between $111,000 and $115,000 is expected to be key for potential rebounds.
Data from Coinglass revealed total crypto market liquidations of approximately $630.68 million over the previous 24 hours, with nearly 90% stemming from long positions being forced to close.
Broader Crypto Market Impact
Ethereum dropped 5.5%, briefly falling to $3,600 before recovering to about $3,700, buoyed by retail buyers and inflows into spot ETFs that now exceed $21.85 billion. Several other major altcoins also experienced steep declines: Solana and XRP each fell over 6%, while Dogecoin, Cardano, Hyperliquid, Stellar, Sui, and Chainlink saw losses ranging from 7% up to nearly 10%.
The overall global crypto market capitalization slipped by 3.82%, settling at around $3.75 trillion. This selloff reflected a risk-off sentiment across financial markets, intensified by uncertainties triggered by US trade policies.
Macroeconomic Concerns and Analyst Insights
Macroeconomic worries, particularly following the Federal Reserve’s warnings of slowing economic growth coupled with trade tariff announcements, played a principal role in this market jitteriness. Riya Sehgal, Research Analyst at Delta Exchange, explained, “The nearly 3% decline in market cap was mainly driven by these developments.”
Despite the short-term turbulence, Sehgal highlighted a note of cautious optimism in Bitcoin’s options market. “The Put-Call Ratio currently stands at 0.65 with visible call buildup between $116,000 and $120,000, indicating bullish expectations. The reduction in puts near $109,000 to $111,000 points to weakening bearish sentiment,” she added.
Parth Srivastava, Head of Quant at 9Point Capital, echoed this sentiment, describing Bitcoin as remaining in a "healthy buy-the-dip zone." He noted that ongoing institutional demand is steadily absorbing supply. “We anticipate ongoing consolidation leading to a fresh breakout as we head into the final quarter of the year,” Srivastava said.
Ethereum and Stablecoins Steady
Ethereum’s resilience was underscored by a quick rebound from lows near $3,600, supported by retail dip-buying and growth in exchangetraded fund (ETF) inflows. The CoinSwitch Markets Desk commented, “ETH maintaining levels near $3,700 despite the recent 5% decline signals steadiness. Should Bitcoin regain ground above $116,100 to $116,200, positive momentum is expected to return.”
Additionally, Tether’s robust Q2 profit of $4.9 billion showcased increasing interest in stablecoins amid developing regulatory clarity in the United States, which provides another pillar of support to the crypto ecosystem.
Outlook
While the US tariffs and profit-booking triggered a sharp correction, industry experts maintain a long-term bullish outlook for the crypto market. The key support levels for Bitcoin and ongoing institutional inflows into ETFs are seen as foundations for eventual recovery and growth.
Investors and traders are advised to closely monitor the $111,000 to $115,000 range for Bitcoin and watch for signs of renewed momentum in key altcoins like Ethereum and Solana in the near term.
Disclaimer: The views expressed by experts in this article are their own and do not necessarily reflect those of The Economic Times.
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