Bitcoin News Today: Bitcoin, Ethereum Drop 1.20%, 1.60% as Weak ISM Data Spur Crypto Sell-Off

Cryptocurrency markets experienced a broad sell-off on Tuesday, driven by a weaker-than-expected ISM Services reading, with Bitcoin, Ethereum, XRP, and Dogecoin among the notable losers. Bitcoin was trading at $113,476.72, down 1.20% on the day, while Ethereum dipped to $3,588.77. XRP fell to $2.97 and Dogecoin to $0.1986. The decline came amid broader macroeconomic uncertainty, as traders recalibrated positions in response to the data [1].

According to IntoTheBlock data, large transactions for both Bitcoin and Ethereum surged by 49.4% and 112.3%, respectively, indicating continued accumulation at lower levels. However, daily active addresses showed mixed signals, with Bitcoin up 15.9% and Ethereum down 1.6%. Coinglass reported that $326.58 million in trader positions were liquidated across the crypto market in the past 24 hours, underscoring the volatile nature of the current environment [1].

Trader Mags described Bitcoin’s price action as a "slow grind up before a massive breakout," suggesting that the current consolidation phase may precede a larger upward move. Conversely, Crypto General noted a weakening in Bitcoin’s dominance, highlighting that BTC had recently swept buy-side liquidity—a potential precursor to further downward movement. He recommended waiting for Bitcoin to break its recent low before positioning for altcoin longs, anticipating a major altseason if BTC dominance falls below 54% [1].

On the other hand, trader Jelle noted that Bitcoin faced rejection at $115,400 on lower timeframes but maintained a bullish stance on the broader trend. He characterized the behavior as typical for summer market conditions and humorously suggested shifting focus to other tasks while the market consolidates. Michael van de Poppe emphasized that Bitcoin failed to break a key resistance zone, which he viewed as a catalyst for the current correction. He expects a further decline to clear remaining liquidity before a stronger recovery can begin [1].

The sell-off also impacted altcoins, with Solana slipping to $163.98 and Shiba Inu falling to $0.00001198. Despite the broad decline, some traders see the pullback as a buying opportunity, particularly in altcoins. The market’s response to macroeconomic data highlights the continued sensitivity of crypto assets to broader economic conditions, particularly at a time when investors are reassessing risk exposure [1].

The ongoing consolidation in Bitcoin’s price, coupled with elevated volatility and liquidity sweeps, points to a critical juncture for the market. Analysts and traders are closely watching for a definitive breakout or breakdown, which could signal the next phase of the crypto cycle. As the broader market remains in flux, positioning for potential volatility appears to be a dominant strategy among active traders [1].

Source: [1] Bitcoin, Ethereum, XRP, Dogecoin Reverse As Market Dips On Weak Macro Data - (https://www.benzinga.com/crypto/cryptocurrency/25/08/46868845/bitcoin-ethereum-xrp-dogecoin-reverse-as-market-dips-on-weak-macro-data?utm_source=coingecko&utm_campaign=partner_feed&utm_medium=partner_feed&utm_content=site)