- Crypto market cap sank to $3.97T as Bitcoin tumbled to $115K and Ethereum slid to $4.2K amid macro pressures.
- Profit-taking, bearish technicals, and whale activity deepened the sell-off after weeks of strong gains.
- Over $550M in liquidations hit traders, with ETH longs seeing the biggest losses at $179M in 24 hours.
Just days after bulls pushed the market to fresh highs, sentiment flipped, dragging the total crypto market cap down to $3.97 trillion. Bitcoin, once soaring at $124,400, is now sitting closer to $115,000. Ethereum has dropped to the $4,200 range, while XRP slid back under $3. The sudden shift shows how fragile momentum can be when broader uncertainty creeps into markets.
Macroeconomic and Political Pressure
A hotter-than-expected U.S. Producer Price Index rattled investors, raising doubts about the Federal Reserve’s ability to cut rates in September. Traders had been banking on a dovish turn, but with retail earnings ahead and central banks piling into gold instead of crypto, caution is spreading. To make matters worse, Treasury Secretary Scott Bessent poured cold water on hopes for new government-backed crypto reserves, saying the U.S. wouldn’t be buying additional Bitcoin. On the geopolitical side, tensions between Russia and Ukraine remain high, with no peace deal yet in sight despite Trump’s involvement—another layer of uncertainty weighing on risk assets.
Profit-Taking and Technical Weakness
After massive rallies in recent weeks, profit-taking was almost inevitable. XRP holders, with over 94% in profit, started cashing out. Ethereum also saw significant outflows—$272 million in a single day—while whales moved tens of millions worth of ETH onto exchanges. Technical indicators like RSI and MACD showed bearish divergence, confirming that the market was overheated and primed for a correction.
US-Russia-Ukraine Tension Adds Uncertainty
Geopolitics have also weighed heavily on investor sentiment. After failing to secure a peace deal with Vladimir Putin, U.S. President Donald Trump is now set to meet Ukraine’s President Volodymyr Zelenskyy. Traders are cautious heading into the talks, as the ongoing war continues to cast a shadow across global markets. With no clear path to resolution, some investors are de-risking, contributing to the crypto sell-off.
Liquidations Add Fuel to the Fire
The real damage came from liquidations. With Bitcoin breaking below key support at $118,800 and Ethereum sliding in tandem, leveraged traders faced the squeeze. In just 24 hours, more than $550 million in positions were wiped out, impacting over 131,000 traders. Ethereum longs were hit hardest at $179 million, while Bitcoin liquidations reached $123 million. The largest single liquidation happened on BitMEX’s XBTZ25 contract, wiping $7.8 million in one go.
