On August 1, 2025, Bitcoin (BTC) dropped below $113,000, resulting in over $700 million in liquidations. This decline coincided with unfavorable macroeconomic news and increasing geopolitical tensions.
Bitcoin Price Drop
Bitcoin's price fell below $113,000, causing a chain reaction of liquidations exceeding $700 million. The decline was exacerbated by poor US jobs data and rising geopolitical tensions, significantly impacting market stability.
> "Bitcoin is locked in a fierce tug-of-war between bullish and bearish forces, hovering around the $113,000 pivot point." — CITE_NA
Political and Economic Factors
Political and economic factors have injected volatility into the market, aligning with historical patterns of profit-taking following price surges. The recent price adjustments are part of an ongoing response to these broader forces.
Market and Liquidations
The immediate market impact included BTC dominance rising above 62% and a decrease in altcoin valuations. Major cryptocurrencies experienced a correlated decline, with market sentiment turning cautious.
The drop in Bitcoin and subsequent liquidations highlight the market's sensitivity to external political and economic factors. The current situation may lead to further corrections if investor confidence continues to wane.
