Bitcoin News Today: Bitcoin Plummets 4.3% to Three-Week Low Amid Geopolitical and Rate Hike Fears

Bitcoin's price has sharply declined amid growing economic and geopolitical uncertainties, with the cryptocurrency tumbling to a three-week low of $112,000 on August 2, according to CoinMarketCap. The digital asset had previously held steady between $117,000 and $120,000 since late July, following a peak of $123,000 in mid-July. The sell-off was exacerbated by leveraged position liquidations nearing $983 million, as reported by market analyst Ali Martinez, intensifying downward pressure on the market [1].

The broader cryptocurrency market has mirrored Bitcoin’s downturn, with Ethereum, Solana, and XRP all experiencing significant losses. XRP, in particular, fell below $3 within 24 hours, marking an over 8% decline. The market-wide drop has wiped out approximately $128 billion in value, according to social media reports, signaling a broader correction in risk assets [3].

Market observers are closely monitoring the $105,000 to $107,000 range, identified as a key support zone for Bitcoin. If this level is breached, it could trigger further selling waves. Conversely, a successful defense of this range could provide the market with much-needed stability. Miners have also contributed to the decline, offloading 3,000 BTC over the past two weeks amid rising operational costs and broader economic pessimism [1].

The sell-off has been fueled by concerns over U.S. interest rate hikes and escalating trade tensions. Analysts warn that a continued slide below $116,000 could deepen the current period of volatility. The bearish sentiment has also affected traditional financial markets, with major U.S. indices like the Dow Jones and S&P 500 dropping sharply as recession fears mount [5].

Despite the turbulence, Bitcoin has shown some resilience, rebounding above $113,000 in late July. However, the market remains on edge, with investors closely watching for further developments in trade policies and economic data. The interconnectedness between traditional and crypto markets is increasingly evident, as geopolitical tensions and macroeconomic shifts have immediate and significant effects on digital asset prices [6].

The broader crypto ecosystem, including meme coins and DeFi platforms, is also undergoing a correction. The total market cap of meme coins has fallen below $54.8 billion in early August, a decline of over 10% from early June levels. However, some niche projects, particularly on the Solana network, have shown signs of recovery, with tokens like DogWifHat and Snorter gaining traction [8].

As the market braces for more volatility, attention remains focused on key macroeconomic indicators and policy decisions that could shape the trajectory of Bitcoin and other cryptocurrencies in the coming months. The looming possibility of Donald Trump's unannounced political announcements has further heightened uncertainty, reinforcing the need for caution among traders [1].

Sources:

[1] CoinMarketCap - [https://coinmarketcap.com/community/articles/688f5aed31f6e26bea1932b6/](https://coinmarketcap.com/community/articles/688f5aed31f6e26bea1932b6/)

[3] Instagram - [https://www.instagram.com/p/DM3PMP-NtUq/](https://www.instagram.com/p/DM3PMP-NtUq/)

[5] Economic Times - [https://m.economictimes.com/news/international/us/u-s-stock-market-plunges-today-as-dow-sp-500-and-nasdaq-sink-deep-in-red-a-stormy-start-to-august-on-wall-street-as-weak-jobs-report-and-trump-tariff-turmoil-spark-economic-recession-panic/articleshow/123046147.cms](https://m.economictimes.com/news/international/us/u-s-stock-market-plunges-today-as-dow-sp-500-and-nasdaq-sink-deep-in-red-a-stormy-start-to-august-on-wall-street-as-weak-jobs-report-and-trump-tariff-turmoil-spark-economic-recession-panic/articleshow/123046147.cms)

[8] CryptoDnes.bg - [https://cryptodnes.bg/en/tag/snorter/page/2/](https://cryptodnes.bg/en/tag/snorter/page/2/)