Bitcoin News Today: Bitcoin Dips Below $114,000 as $700M in Long Positions Liquidated

Bitcoin’s price fell below $114,000 on August 2, 2025, marking one of the most significant corrections in months and triggering widespread market liquidations. The decline, which ranged between 1.16% and 5.6%, was attributed to a combination of macroeconomic concerns, technical breakdowns, and rising volatility across derivatives markets. The drop saw over $700 million in leveraged long positions wiped out, with traders across major exchanges facing margin calls [1]. The price slide followed a recent high of nearly $120,000 and continued a pattern of instability that had been observed in late July and early August [2].

The selloff was exacerbated by the release of the U.S. jobs report, which reignited concerns over inflation and potential tighter monetary policy. The report's official was soon dismissed, adding to market uncertainty. Geopolitical tensions, including Donald Trump’s remarks on deploying nuclear submarines near Russian waters and the White House’s new tariff policies, further intensified volatility [3]. These developments prompted investors to cut risk exposures, accelerating the downward trend in crypto assets.

Bitcoin’s decline dragged down the broader crypto market, with Ethereum falling more than 10% to below $3,500 in the same period. Over 160,000 traders saw their positions liquidated, with long positions accounting for the majority of the losses. The Crypto Fear & Greed Index dropped to 55, signaling a shift from optimism to caution among traders. The sector as a whole lost nearly $500 billion in market value as the selloff deepened [3].

Analysts have raised concerns over the potential for further declines. Arthur Hayes, former head of BitMEX, predicted that Bitcoin could test the $100,000 level in the coming weeks [4]. Glassnode also warned that a close below $110,000 could accelerate the selloff, reinforcing the bearish outlook. Some forecasts, such as those suggesting a potential rebound in Q4, remain speculative and are based on analyst expectations rather than current market conditions [3].

Despite Trump’s calls for lower interest rates, the Federal Reserve has maintained its rate range between 4% and 5%. While two officials have expressed support for modest rate cuts, most have shown no inclination to ease policy soon. This uncertainty has kept investors cautious, with speculation growing about Trump’s potential nominee to replace Fed Chair Jerome Powell when his term expires in May 2026 [3].

The recent volatility has highlighted the ongoing challenges facing the crypto market. As Bitcoin remains below key psychological levels, the focus has shifted to whether the asset can stabilize or if further declines are inevitable. With leveraged positions increasingly vulnerable and risk sentiment shifting, the coming weeks could determine the next phase of Bitcoin’s price trajectory [3].

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Sources:

[1] Bitcoin Magazine (https://bitcoinmagazine.com/news/713-million-worth-of-bitcoin-and-crypto-longs-liquidated-as-bitcoin-price-dips-below-114000)

[2] Vanguard (https://www.vanguardngr.com/2025/08/crypto-market-suffers-700m-liquidation-as-bitcoin-falls-amid-global-turmoil/)

[4] AInvest (https://www.ainvest.com/news/bitcoin-news-today-arthur-hayes-predicts-btc-test-100k-nfp-sparks-market-sell-2508/)