- Bitcoin price drop triggered major liquidation event.
- Over $700 million liquidated in 24 hours.
- Altcoins experienced significant sell-offs.
Bitcoin’s price dropped below $113,000 on August 1, 2025, triggering over $700 million in forced liquidations across major cryptocurrency exchanges.
This event highlights vulnerabilities in leveraged positions, causing ripples across altcoin markets amidst ongoing macroeconomic pressures and regulatory tightness.
Bitcoin’s precipitous decline below $113,000 on August 1, 2025, has led to significant market repercussions, with over $700 million liquidated, as cryptocurrencies felt the heat.
Market Chaos Amid Bitcoin’s Plunge
The sudden decline of Bitcoin’s price below $113,000 on August 1, 2025, led to a vast liquidation event. Over $700 million was liquidated from crypto derivatives, causing a steep sell-off across cryptocurrencies including BTC, ETH, SOL, and XRP. Major cryptocurrency exchanges like Binance and Coinbase processed the bulk of these forced liquidations. Despite the massive financial impact, neither executives from these platforms nor top crypto leaders commented publicly about the developments.
Ripple Effect Across Altcoins
The immediate consequences were felt across the cryptocurrency market, with altcoins declining substantially. A 6% or more drop was evidenced in notable cryptocurrencies, intensifying the sell-off pressures on digital assets.
The event underscored intensified macroeconomic pressures, including high U.S. interest rates and weak jobs data, contributing to the stress in crypto assets. Such external factors have played a significant role in financial market volatility.
Historical Parallels and Future Implications
This scenario resembles past occurrences in May 2021 and June 2022, where rapid sell-offs led to considerable market instability. The persistent high leverage in trades remains a challenge for the market’s stability.
The future may see regulatory scrutiny tightening further, especially concerning leveraged trades and DeFi protocols. Observations and historical data suggest the potential for more stringent measures to control excessive market exposure during volatile periods.
As of now, there are no direct quotes from key opinion leaders (KOLs), cryptocurrency exchange founders, or regulatory bodies concerning the Bitcoin price drop and subsequent market impact on August 1, 2025. The analysis indicates that major figures like Arthur Hayes, Changpeng Zhao (CZ), Brian Armstrong, and Vitalik Buterin have not made public statements on available channels regarding the event. Similarly, regulatory agencies such as the SEC, CFTC, and others have not issued specific comments in relation to the market developments stemming from these liquidations.
