Bitcoin News Today: Bitcoin Drops 5% as Macroeconomic Pressures Drive $700M Liquidations

Bitcoin's price experienced a sharp and volatile decline in late July and early August 2025, briefly falling below $113,000 on several occasions. According to HTX market data, the cryptocurrency recorded a 2.10% drop over the previous 24 hours, with the most pronounced dip occurring on July 19, when Bitcoin briefly hit $112,724 before stabilizing [3]. The price movement reflected broader market anxieties driven by global macroeconomic pressures and geopolitical tensions [1][2][3].

The correction triggered significant market reactions, including over $700 million in liquidations on August 1 as traders faced margin calls [2]. The decline continued a downward trend that had begun on July 15, when Bitcoin fell from $120,000 to $116,000 in a three-week span [5]. Analysts have attributed the drop to a combination of investor sentiment shifts and external financial dynamics, with some viewing it as a necessary correction after recent price gains [6].

Michaël van de Poppe, a prominent crypto market expert, described the current correction as an opportunity for investors to accumulate assets ahead of a potential rebound in late August. He noted that Bitcoin and Ethereum had both seen declines of approximately 5% and 7.5%, respectively, returning to levels below their recent highs [6]. Despite the broader market downturn, Bitcoin retained a dominance level of 62%, signaling continued investor preference for the largest cryptocurrency over smaller, more speculative assets [6].

The broader market was also impacted, with the combined capitalization of altcoins—excluding Bitcoin and Ethereum—falling to approximately $966 billion, reflecting increased selling pressure [6]. While no official projections have indicated a prolonged bearish trend, van de Poppe expressed cautious optimism, emphasizing that the current correction does not necessarily signal the onset of a new bear market [6].

Bitcoin’s decline has reignited discussions about the resilience of the cryptocurrency market and its vulnerability to macroeconomic shifts. Investors are closely monitoring whether this correction will lead to stabilization or evolve into a more extended downturn. The coming weeks will be pivotal in determining Bitcoin’s trajectory and its influence over the broader crypto market [1][2][3][5].

Source:

[1] Bitcoin News Today: Bitcoin Slides Below $113000 Amid ... (https://www.ainvest.com/news/bitcoin-news-today-bitcoin-slides-113-000-geopolitical-tensions-macroeconomic-concerns-2508/)

[2] Bitcoin News Today: Bitcoin Plunge Triggers $700M in ... (https://www.ainvest.com/news/bitcoin-news-today-bitcoin-plunge-triggers-700m-liquidations-macro-pressures-mount-2508/)

[3] Massacre! Bitcoin falls below $113000, Ethereum loses ... (https://www.binance.com/en/square/post/27752586606930)

[4] Bitcoin Hits the Floor and Rattles Investors (https://www.onesafe.io/blog/bitcoin-price-drop-market-analysis)

[5] 【Bitcoin Suddenly Plummets! Key Information You Need to ... (https://www.binance.com/en/square/post/27746516621650)

[6] Bitcoin Drops 5% As Altcoins Bleed: Van de Po... (https://coinstats.app/news/79d59af239432acc5e1184c0854839fa8b1efa6b2f70acaf7cb7d789404cebec_Bitcoin-Drops-5-As-Altcoins-Bleed-Van-de-Poppe-Sees-Correction-as-Opportunity-Urges-Accumulation-Ahead-of-Potential-August-Recovery)