Bitcoin News Today: Bitcoin, Ethereum, XRP Tumble 5.6%-10.5% as $900M in Liquidations Hit Crypto Market

Top cryptocurrencies Bitcoin, Ethereum, and XRP saw significant declines this week, driving over $900 million in liquidations as macroeconomic and geopolitical pressures weighed on the market. The drop accelerated on Friday, with Bitcoin falling below $113,400 from a recent peak near $120,000, marking a 5.6% decline. Ethereum dropped more sharply, falling from around $4,000 on Sunday to $3,518, a 10.5% loss, while XRP fell from $3.32 to $2.98, a 10.2% decline over the same period [1].

The liquidations were heavily skewed toward long positions, with over $823 million in such bets wiped out in just 24 hours, according to data from CoinGlass. This suggests that many traders were caught off guard by the rapid deterioration in market sentiment. The downturn was attributed to a confluence of factors, including a disappointing U.S. jobs report, new global tariffs announced by the Trump administration, and heightened geopolitical tensions following Trump’s order to deploy submarines near Russian waters. These developments added to the uncertainty already present in both traditional and crypto markets [1].

Market observers have pointed to the influence of large whale activity as another potential contributor to the volatility, with ongoing tug-of-war between profit-taking and long-term holders affecting Bitcoin’s price trajectory. Some analysts predict further declines in the coming months, with Bitcoin potentially falling to as low as $80,000 before rebounding in the fourth quarter. Glassnode analysts noted that a drop below $110,000 could trigger an acceleration in selling, especially after a period of strong gains [1].

Despite the bearish trend, some market participants remain cautiously optimistic. Myriad users project a more than 53% chance that Bitcoin will reach a new peak of $125,000 rather than dropping back to $105,000. However, the immediate outlook remains uncertain, with traders bracing for potential further losses as macroeconomic conditions remain volatile and leverage-driven positions continue to unwind [1].

The liquidation levels observed in the past week underscore the fragility of leveraged positions in a highly interconnected market. With no immediate relief in sight from either macroeconomic or geopolitical developments, investors are likely to remain defensive, and further corrections could follow if external conditions worsen.

Source: [1] Bitcoin News Today: Over $1 Billion in Crypto Liquidations... (https://www.ainvest.com/news/bitcoin-news-today-1-billion-crypto-liquidations-btc-altcoins-tumble-2-5-9-volatility-2508/)