Bitcoin News Today: Bitcoin Dips Below $112,000 Amid Geopolitical Tensions and $905M Liquidations

Bitcoin fell below $112,000 on August 2, 2025, marking a 0.55% decline over the past 24 hours [2]. The price retreat reflects a broader sell-off across the cryptocurrency market, which saw Bitcoin dip from a near $120,000 peak at the start of the week to $113,411 as of the latest report [2]. Ethereum also experienced a downturn, with its price dropping from around $4,000 to $3,518, representing a 10.5% decline within the week [2]. XRP similarly saw a 10.2% decrease in value, falling from $3.32 to $2.98 [2].

The decline in major cryptocurrencies occurred amid heightened macroeconomic and geopolitical tensions. A weak U.S. jobs report released by the Labor Department sparked immediate market reactions, with President Donald Trump quickly removing the official responsible for the report [2]. In addition, the U.S. government announced sweeping global tariffs, further unsettling investors. The situation worsened as Trump ordered multiple nuclear submarines to approach Russian waters, in response to earlier threats from a Russian official [2]. These events contributed to a broader market sell-off that affected both traditional and crypto markets.

The downturn has triggered significant liquidations in crypto derivatives. Over $905 million in positions were liquidated within the past 24 hours, with long positions accounting for more than $823 million of the total [2]. The sell-off is attributed to a combination of profit-taking activity and long-term holders adjusting their positions [2]. Analysts noted that the tug-of-war between these two groups could prolong the downward pressure on Bitcoin in the coming months [2].

Glassnode analysts highlighted that if Bitcoin’s price drops below $110,000, it could accelerate further selling pressure in the short term [2]. Despite these concerns, Myriad users expressed optimism that Bitcoin is more likely to reach a new peak of $125,000 rather than fall to $105,000, with the climb to $125,000 having a more than 53% chance as of the latest report [2]. However, other analysts forecast that Bitcoin could dip as low as $80,000 over the course of August and September before potentially rebounding in the fourth quarter [2].

The recent market dynamics underscore the growing influence of macroeconomic and geopolitical factors on crypto pricing. As investors react to shifting global conditions, the near-term outlook remains uncertain. However, long-term holders continue to maintain a bullish stance, supported by the belief that Bitcoin could achieve a $225,000 target by the end of 2026 [1]. The coming weeks will be critical in determining whether the current correction will be short-lived or signal the start of a more prolonged bearish phase.

Source:

[1] Why Analysts Aren't Worried by Coinbase's Stock Dive

https://decrypt.co/333269/why-analysts-arent-worried-coinbase-stock-dive-earnings-miss

[2] Bitcoin, Ethereum and XRP Sink as Crypto Liquidations

https://decrypt.co/333226/bitcoin-ethereum-xrp-sink-crypto-liquidations-top-900-million