The cryptocurrency market faced a severe correction on August 1, 2025, with over $700 million in liquidations recorded in just 24 hours across Bitcoin and other major assets.
According to Coinglass, long positions accounted for $707 million, highlighting the brutal wipeout of bullish bets across Bitcoin (BTC), Ethereum (ETH), Solana (SOL), Cardano (ADA), Dogecoin (DOGE), and others.
Total market capitalization plummeted 3.95% to $3.7 trillion, while Bitcoin dropped 3.1% to $114,892and Ethereum sank 6.1% to $3,620. Altcoins saw deeper cuts—Cardano fell 8.5%, XRP slid 7.5%, and Solana lost over 6.9%. The Crypto Fear and Greed Index dropped to 60, signaling weakening investor confidence.
The Fed also held interest rates steady at 4.25–4.50% for the fifth time, signaling prolonged high-rate conditions that dampen risk appetite.
These developments triggered a retreat from speculative assets like crypto. The crypto market’s relative strength index (RSI) fell to 35.4, and total open interest dropped 3% to $193 billion, indicating a broader market weakness.
On-chain activity has added to the anxiety. Five dormant Bitcoin miner wallets from 2010 suddenly moved 250 BTC (≈$30M), sparking concerns about impending sell pressure. Meanwhile, short-term holders continue to capitulate, selling BTC at a loss.
In contrast, savvy traders like 0xCB92 profited by shorting ETH with 20x leverage, earning over $3.7 million, underscoring the extreme volatility and high-stakes nature of the current market.
Despite the chaos, long-term investor sentiment remains watchful but intact. Still, with macro headwinds, whale wallet movements, and leverage-based volatility, the road ahead remains rocky for crypto bulls.
Cover image from ChatGPT, BTCUSD chart from Tradingview
