Bitcoin News Today: Crypto Market Slides Past $3.65 Trillion as Liquidations and Weak Jobs Data Spur Fears

The cryptocurrency market has experienced a sharp downturn after breaking key support levels, triggering significant liquidations and investor anxiety. Total market capitalization dropped below $3.65 trillion, with Bitcoin falling below $115,000 for the first time in weeks. This drop led to $828 million in liquidations, of which $753 million was attributed to long positions [1]. The sell-off has been compounded by weak U.S. employment data, showing just 73,000 new hires in the latest report, and renewed tariff threats from Donald Trump against Chinese imports, which have dented overall risk appetite [1].

The impact extended beyond crypto assets, with related equities also suffering. Coinbase saw its shares fall 8%, while major mining firms dropped as much as 16% [1]. Technical analysis highlights the possibility of further declines. For Bitcoin, a failure to hold above $113,900 could lead to a slide toward $110,000 and possibly $108,000. The total market cap could fall further to $3.58 trillion if buyers fail to defend the $3.73 trillion level [1].

Meanwhile, outflows from spot Bitcoin ETFs have added to the pressure, with $133 million leaving the funds recently [1]. Despite these challenges, some market observers suggest that debt concerns could eventually fuel a new bull market for Bitcoin, although that remains speculative at this stage [1]. The market remains highly sensitive to macroeconomic developments. The Federal Reserve’s comments on August 7 and the release of CPI data on August 12 are now seen as pivotal moments that could determine whether the current correction stabilizes or deepens [1].

High leverage remains a critical vulnerability in the current environment. Investors are bracing for further volatility, and the path forward will depend heavily on both market sentiment and central bank policy decisions in the coming weeks [1].

Source: [1] How Low Can the Crypto Market Crash After Breaking Support (https://coinmarketcap.com/community/articles/688d0671db477a6adc3edbbf/)