August 1–2, 2025 — The crypto market witnessed a sharp downturn, with altcoins falling up to 20% in some cases. While Bitcoin held relatively steady (-2%), mid- and small-cap tokens were hit hard across the board.

So what caused the sell-off, and why did altcoins suffer most?

📉 1. Macroeconomic Pressure Hits Risk Assets

The trigger came from a mix of negative macro headlines, sparking risk-off sentiment across all markets — crypto included.


New tariffs announced by Trump’s administration:

🇨🇭 Switzerland – 39%

🇿🇦 South Africa – 30%

🇮🇳 India – 25%
These spooked global markets and triggered a flight to safety.


Federal Reserve stance: Rates held steady, but Powell remained hawkish. No rate cuts expected until late Q4.

Weak U.S. jobs data: Only 73,000 new jobs in July, pushing unemployment over 4.2%.

💥 2. Liquidations & Whale Activity Amplify the Crash

Over $631 million in leveraged positions were liquidated within 24 hours.

Large wallets moved:


~16,000 BTC

~2M ETH

А clear signal that some whales took profits at local highs.

🧪 3. Why Altcoins Fell Harder Than Bitcoin

  1. Low institutional demand

  2. High leverage

  3. Lower liquidity

  4. Narrative fatigue

  5. Seasonal weakness

Bitcoin dominance surged past 62%, and the ETH/BTC ratio fell — classic signs of altcoin underperformance.

📊 4. Is There a Path to Recovery?

A few things need to happen before altcoins bounce:

  1. Clear Fed pivot or dovish signals

  2. Stabilization in BTC & ETH charts

  3. Return of retail/institutional risk appetite

  4. Narrative-driven flows (RWA, AI, DePIN)

Until then, altcoins remain high beta assets in a macro-sensitive market.

🧠 Final Thoughts

This crash wasn’t random — it was a clean reaction to macro uncertainty and trader overexposure.

While some altcoins are now oversold technically, investors should be cautious. Focus on real fundamentals, protocol traction, and BTC-relative strength before jumping back in.

💬 Are you buying the dip, holding strong bags, or rotating into Bitcoin?

Let’s talk recovery strategies 👇

#CryptoCrash #Altcoins #BitcoinDominance #MarketUpdate #DYOR