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Bitcoin Dips Below $113K Triggering Market Volatility

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bitcoin price dip aug 2025
Key Takeaways:
  • Bitcoin drops below $113K, $700M liquidations occur.
  • BTC leads the market decline.
  • Geopolitical tensions influence market sentiment.
bitcoin-price-dip-and-market-volatility-august-2025
Bitcoin Price Dip and Market Volatility – August 2025

Bitcoin (BTC) fell below $113,000 on August 1, 2025, leading to over $700 million in liquidations. The drop coincided with bearish macroeconomic developments and increased geopolitical tensions, impacting market sentiment and increasing volatility across cryptocurrencies.

Maga

Bitcoin fell below $113,000 on August 1, 2025, resulting in over $700 million in liquidations and triggering heightened volatility across the cryptocurrency market.

Bitcoin’s Price

Bitcoin’s price dipped below $113,000, causing a chain reaction of liquidations that exceeded $700 million. The decline was exacerbated by poor US jobs data and mounting geopolitical tensions affecting overall market stability.

Bitcoin is locked in a fierce tug-of-war between bullish and bearish forces, hovering around the $113,000 pivot point. — Binance Square Channel

The effect was most prominent in BTC and ETH, with these cryptocurrencies facing substantial losses. Liquidations impacted over 161,000 traders, primarily in long positions, demonstrating the broad market effect.

The immediate market impact included a rise in BTC dominance above 62% and a decrease in altcoin valuations. Major cryptocurrencies experienced a correlated decline, with market sentiment turning cautious.

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.

Current analysis suggests further potential corrections if investor confidence continues to wane. Historical data indicates that such patterns often precede recovery or shifts in market dominance, particularly affecting altcoins.

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