Bitcoin News Today: Crypto Market Slides 6% as Options Expiry and Tariff Fears Trigger $905M Liquidations

The cryptocurrency market faced a sharp correction in late July and early August 2025, driven by a confluence of profit-taking and forced liquidations. Major assets like Bitcoin and Ethereum experienced significant price declines, with Bitcoin dropping below the $115,000 threshold, a key psychological level. The sell-off was exacerbated by macroeconomic uncertainties, including U.S. tariff announcements and a wave of position adjustments after a strong summer rally [5].

Liquidations across exchanges totaled over $500 million in early July, rising to as much as $905 million by late July, reflecting the growing fragility of leveraged positions in the market [2][3]. The impact was not limited to Bitcoin, as Ethereum also saw a sharp sell-off, with its price dropping as much as 5% during the week of July 29–August 2. The broader cryptocurrency market capitalization fell by more than 6% within 24 hours, sliding from $3.85 trillion to $3.61 trillion [4].

A key contributing factor to the downturn was the expiry of over $7 billion in Bitcoin and Ethereum options, prompting traders to reposition ahead of major events [6]. Additionally, outflows from Bitcoin spot ETFs and a broader risk-off sentiment in global financial markets added downward pressure. Long positions were particularly vulnerable, with leveraged investors facing margin calls as prices continued to fall [3].

The lack of official commentary from key project leaders, including Bitcoin and Ethereum, further intensified uncertainty, as the downturn was more attributable to macroeconomic factors than individual project developments. Market observers, including Michael Saylor, CEO of MicroStrategy, noted the dominance of macroeconomic influences in the current environment, highlighting the challenges investors face in maintaining confidence amid such volatility [1].

As the market continues to adjust, the focus remains on whether prices can stabilize or if further declines could trigger additional waves of forced selling. The correction underscores the inherent risks of speculative trading in the cryptocurrency space, particularly during periods of heightened volatility [5].

Source:

[1] title1.............................(https://crypto.news/bitcoin-and-the-crypto-market-are-in-the-red-today-heres-why/)

[2] title2.............................(https://coinpedia.org/price-analysis/crypto-market-hit-by-500m-liquidations-as-bitcoin-and-ethereum-lose-july-gains/)

[3] title3.............................(https://www.ainvest.com/news/bitcoin-news-today-bitcoin-dips-112-000-geopolitical-tensions-905m-liquidations-2508/)

[4] title4.............................(https://www.bitcoinsensus.com/news/bitcoin/why-is-crypto-down-today-230b-sell-off-hits-bitcoin-and-altcoins)

[5] title5.............................(https://m.economictimes.com/markets/cryptocurrency/crypto-news/bitcoin-slips-below-115200-as-u-s-tariffs-rattle-markets-ethereum-solana-dogecoin-fall-up-to-8/articleshow/123038529.cms)

[6] title6.............................(https://www.binance.com/en/square/post/27756782840490)