Bitcoin News Today: Bitcoin Falls 0.5% as Volatility Rises Amid Regulatory Shifts and $863M Liquidations

Generated by AI AgentCoin World
Sunday, Aug 3, 2025 7:26 am ET1min read
Aime RobotAime Summary

- Bitcoin's August 2025 price swings peaked at $123,000 in July, then dropped below $114,000 on August 1, triggering $863M in liquidations.

- U.S. SEC approved in-kind redemptions for crypto ETFs, while Project Crypto signaled regulatory shifts, yet Bitcoin ETFs faced $812M outflows—the year’s second-worst.

- Bearish sentiment emerged as Bitcoin’s Advanced Sentiment Index turned negative, and CME futures showed exhaustion, despite a brief July rally above $116,000.

- Analysts noted short-term selling pressure and corrections, but Bitcoin remains central to investor focus amid evolving regulations and macroeconomic pressures.

Bitcoin experienced a rollercoaster price movement in early August 2025, surging to a peak of $114,000 on July 14 and briefly touching $123,000 the previous month before retreating and correcting to around $114,000 again [1][4]. The price then dipped below $114,000 on August 1, triggering significant liquidations estimated at $863 million and increasing market turbulence [2][5]. By August 2, the coin closed at $113,840, down 0.5% in the past 24 hours, while Ethereum fell 2.7% to $3,510 [8].

The recent volatility was exacerbated by global macroeconomic uncertainty and regulatory shifts. The U.S. Securities and Exchange Commission (SEC) approved in-kind redemptions for spot crypto ETFs, and a deregulatory initiative known as Project Crypto was launched, signaling a potential shift in the regulatory landscape [8]. Despite these developments, the market faced notable outflows, with Bitcoin ETFs losing $812 million in a single day—the second-worst outflow of the year [8].

Bitcoin’s price movement also saw signs of bearish sentiment. The Advanced Sentiment Index for Bitcoin entered bearish territory, indicating a breakdown from a two-week consolidation range between $115,724 and $122,077 [7]. Additionally, the CME Bitcoin futures gap at $114,000 was filled, with bears showing signs of exhaustion [6].

Although Bitcoin managed to reach a new monthly high above $116,000 in July, it retreated to approximately $114,000 by August 2 [8]. Analysts noted that while the market has shown resilience, the bull run appears to be facing temporary headwinds due to short-term selling pressure and increased corrections [4].

Overall, Bitcoin remains a focal point of investor sentiment as the market continues to adjust to evolving regulatory frameworks and macroeconomic pressures [8].

Sources:

[1]title1: Bitcoin touched $114000 per coin, rising 1.29% on the day (url1: https://news.futunn.com/en/flash/19178008/bitcoin-touched-114000-per-coin-rising-1-29-on-the)

[2]title2: Bitcoin Plunge Below $115000 Wipes Out $700M In Crypto ... (url2: https://www.mitrade.com/insights/news/live-news/article-3-1007105-20250802)

[3]title3: Bitcoin just completed its fourth touch and is gearing up fo (url3: https://www.binance.com/en/square/post/27769379197889)

[4]title4: Bitcoin Price at $114417: Is the Bull Run Losing Steam? (url4: https://www.analyticsinsight.net/cryptocurrency-analytics-insight/bitcoin-price-at-114417-is-the-bull-run-losing-steam)

[5]title5: Bitcoin News Today: Bitcoin Falls Below $113000 Amid ... (url5: https://www.ainvest.com/news/bitcoin-news-today-bitcoin-falls-113-000-market-volatility-900m-liquidations-2508/)

[6]title6: Bitcoin Volatility Peaks In August 2025 (url6: https://www.blockchainmagazine.net/bitcoins-august-rollercoaster-understanding-the-wild-swings-and-whats-next/)

[7]title7: Bitcoin Advanced Sentiment Index Reaches Bearish Levels (url7: https://www.mitrade.com/insights/news/live-news/article-3-1006319-20250802)

[8]title8: Bitcoin and Ethereum ETFs suffer second-worst day of 2025 in ... (url8: https://www.dlnews.com/articles/markets/bitcoin-ethereum-etfs-second-worst-day-landmark-crypto-week/)

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