Why Markets Are Crashing on August 2, 2025

i know you all worry , it is crashing time but why markets are crashing today ,please dear first like follow me

The crypto market is in turmoil today, with major assets like Bitcoin, Ethereum, XRP, Solana, and Dogecoin sliding sharply up to 10% triggering over $600M in leveraged liquidation and erasing around $150B from total market cap

What’s Driving the Plunge 🚨

Trump-era tariff surge: New U.S. import duties (up to 50%) stoked fears of global trade disruption and inflation, sparking broader asset sell offs including crypto Blog MevX.

U.S. jobs shock & political turmoil: July saw just 73,000 new jobs and major downward revisions, peeled away investor confidence.

Fed rate pause & no relief: With the Fed holding rates steady, investor sentiment turned defensive. Liquidity dried up, capital shifted toward assets like gold and Treasuries

Bitcoin is currently around $113K 114K, down 6 ,10% from recent highs, and testing support around $112K or even $110K. A move below those levels could drive deeper correction into the $105K area, if sentiment worsens or liquidations spike again

How Traders Can Protect Capital

Use stop-loss orders: Set them at key support zones (e.g. $112K for BTC) to limit exposure.

Reduce leverage: High leverage amplifies risk when liquidations ensue, even small drops can wipe capital.

Diversify & hedge: Rotate a portion into stable assets or collateralized holdings like U.S. Treasuries or gold.

Stay informed on macros: Upcoming U.S. inflation, jobs data, Fed statements, or trade news can swing sentiment fast.

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