Bitcoin News Today: Crypto Market Tumbles as Altcoins Drop Over 7% Amid U.S. Tariff Fears

Late July 2025 marked a significant downturn in the cryptocurrency market, with altcoins suffering the most. Solana, Dogecoin, and Cardano each experienced drops exceeding 7% within 24 hours, while Bitcoin fell below $115,200 amid growing investor anxiety over U.S. tariff policies and macroeconomic uncertainty [2]. The broader market saw over $635 million in liquidations across leveraged positions, particularly affecting long traders during a sudden intraday price reversal [1].

The decline was driven by a combination of macroeconomic concerns and aggressive profit-taking by early market participants. U.S. President Trump’s recent tariff announcements intensified fears of a prolonged trade war, heightening volatility in both traditional and crypto markets. Analysts highlighted the fragility of leveraged positions and the sensitivity of altcoins to external economic pressures as key contributors to the rapid sell-off [1].

Bitcoin dropped approximately 2.5% to $114,322 during the same period, while altcoins like XRP and Solana fell over 9%. The market’s unease extended to global macroeconomic conditions, including U.S.-China trade tensions and the Federal Reserve’s decision to maintain interest rates. Despite the sharp drop, some traders remain cautiously optimistic. A report noted that the Relative Strength Index (RSI) for many major cryptocurrencies had entered oversold territory, suggesting that the selling pressure may be nearing its limit and hinting at potential price recovery [6].

The impact of the sell-off extended beyond price movements, affecting trading volumes and investor sentiment. A noticeable shift in market behavior was reported, signaling a broader unease among investors [4]. While several altcoins recorded daily losses, they still managed to remain in positive territory for the month, indicating that the broader market trend, though uneven, has not yet turned decisively bearish.

Analysts remain divided on the outlook. Some, like Vikram Subburaj, CEO of Giottus, emphasize the role of macroeconomic pressures and fragile liquidity in driving the downturn. Others, including Xanrox on TradingView, argue that the current bullish cycle may be nearing its end, with a potential 50% crash in Bitcoin to around $60,000 [7]. Meanwhile, price predictions for August 2025 remain cautiously optimistic, with some analysts suggesting that major cryptocurrencies could recover once uncertainty surrounding trade policies and interest rate decisions begins to ease [8].

The sell-off has reinforced the need for cautious trading strategies, particularly for high-risk altcoins like Dogecoin and XRP, which appear to be bearing the brunt of the market’s current instability. Investors are advised to monitor macroeconomic developments closely and to consider the risks associated with leveraged positions in a volatile market.

Sources:

[1] Solana, Dogecoin, and Cardano lead decline amid $635 million crypto market liquidations

https://www.fxstreet.com/cryptocurrencies/news/solana-dogecoin-and-cardano-lead-decline-amid-635-million-crypto-market-liquidations-202508010604

[2] Bitcoin slips below $115200 as U.S. tariffs rattle markets

https://m.economictimes.com/markets/cryptocurrency/crypto-news/bitcoin-slips-below-115200-as-u-s-tariffs-rattle-markets-ethereum-solana-dogecoin-fall-up-to-8/articleshow/123038529.cms

[4] Crypto Market Sheds $635M in Liquidations as Altcoins

https://www.fxleaders.com/news/2025/08/01/crypto-market-sheds-635m-in-liquidations-as-altcoins-drop-up-to-7/

[5] Crypto Market Faces Drastic Sell-Off, Sending Shockwaves

https://en.coin-turk.com/crypto-market-faces-drastic-sell-off-sending-shockwaves-worldwide/

[6] Why is Crypto Down Today? RSI Oversold Hinting at Rebound Potential

https://99bitcoins.com/news/presales/why-is-crypto-down-today-rsi-oversold-hinting-at-rebound-potential/

[7] Bitcoin Bull Market Is Over? Analyst Calls 50% Crash To

https://www.xt.com/en/blog/post/bitcoin-bull-market-is-over-analyst-calls-50-crash-to-60000

[8] Bitcoin, Ethereum, and XRP Price Prediction for August 2025

https://coinpedia.org/price-analysis/bitcoin-ethereum-and-xrp-price-prediction-for-august-2025/