Ethereum News Today: Bitcoin falls below $115,000 as crypto market plummets 3.5% on fears of tariffs and weak jobs data

The cryptocurrency market faced a sharp correction on August 1, 2025, as Bitcoin fell below the $115,000 support level, triggering a widespread sell-off across major altcoins [1]. Ethereum (ETH), XRP, and Solana (SOL) all lost recent gains, with Ethereum dropping below $3,600, XRP retreating below $3.00, and Solana falling under $170. The broader market capitalization dropped by 3.5% within 24 hours, reaching $3.7 trillion, with liquidations surpassing $850 million and open interest declining to $189 billion [1].

The decline mirrored a risk-off sentiment seen in traditional markets, particularly the Nasdaq, as traders reacted to weak U.S. jobs data and fears of additional tariffs. A recent Federal Reserve rate decision failed to spark a significant rally, further dampening investor confidence [1]. Traders also liquidated leveraged long positions, accelerating the downward momentum. According to CryptoQuant’s realized profit and loss chart, the current dip aligns with historical patterns of profit-taking, suggesting a possible consolidation phase before the next upward push [1]. Julio Moreno of CryptoQuant highlighted that the market might need to stabilize around $112,000 before showing signs of a potential rebound.

The sell-off impacted smaller-cap tokens more severely, with several recording double-digit losses. Hyperliquid, SPX6900, and Pump.fum all fell between 11% and 14%, while Injective dropped nearly 10% [1]. Smaller tokens like ResearchCoin, Centrifuge, and Zircuit were among the top losers for the day. In contrast, BNB demonstrated relative resilience, losing no more than 30% and rebounding close to all-time highs [1].

Despite institutional interest—such as Cathie Wood’s ARK Invest staking $647 million in Solana—these developments failed to offset the prevailing bearish momentum. The market remains sensitive to macroeconomic signals, with the Federal Reserve’s next policy decision expected to play a pivotal role in shaping the near-term outlook. Traders are closely monitoring key support levels in Bitcoin and Ethereum to gauge whether the correction will stabilize or evolve into a more prolonged downturn [1].

Source: [1] Invezz – [https://invezz.com/news/2025/08/01/crypto-wrap-eth-xrp-sol-shed-gains-as-bitcoin-drops-below-115k/](https://invezz.com/news/2025/08/01/crypto-wrap-eth-xrp-sol-shed-gains-as-bitcoin-drops-below-115k/)