On August 1, 2025, the cryptocurrency market is facing a significant pullback. Bitcoin (BTC) has fallen below the $115,000 mark. Dogecoin (DOGE) and Cardano (ADA) have also followed suit, dropping by 8% in the past 24 hours. According to Dogecoin data from CoinGecko, the price of DOGE has decreased by 8.3% on the daily chart and by 9.4% on the weekly chart. On the other hand, the price of ADA has dropped by 8% on the daily chart and by 8.6% over the past week.
With the decline of Dogecoin and Cardano, are we in a bear market?
According to CoinGlass liquidation data, the cryptocurrency market has encountered $756.86 million in liquidations over the past 24 hours. The market surged after the U.S. Securities and Exchange Commission (SEC) announced its 'crypto plan' aimed at making the U.S. a global cryptocurrency superpower. However, this rally did not last long. After the positive news, the market generally experienced a sell-off. Dogecoin (DOGE), Cardano (ADA), and the overall cryptocurrency market have faced significant pullbacks in the past 24 hours.
This drop may be due to the Federal Reserve's decision to maintain interest rates. The Federal Reserve also warned that U.S. economic growth is slowing. Market participants may interpret this as the Federal Reserve potentially not cutting interest rates in the coming months. Conversely, the Federal Reserve may also raise rates to address the slowing economic growth. Dogecoin, ADA, and other cryptocurrencies are among the highest-risk assets in the financial sector. When borrowing becomes difficult, retail investors may avoid risky investments.
As a meme coin, Dogecoin (DOGE) carries more risk than other crypto assets. The price of Dogecoin may be impacted in the coming days. If ETF inflows surge, the market could reverse. ETF inflows have been key to the market rebound over the past month. A similar pattern may reappear in August.
