At the beginning of August, the cryptocurrency market shows a strong correction. Investors are taking losses, altcoins are losing up to 20% in a week. What caused the crash?
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📊 Current prices as of August 2, 2025:
Bitcoin (BTC): ~$112,200 (weekly decline ≈ 6%)
Ethereum (ETH): ~$3,390 (down ~7%)
Solana (SOL): $123 (–11%)
XRP: $0.47 (–9%)
MASK: $0.86 (–24% over 7 days)
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🔍 Reasons for the decline:
1. ❗ Massive outflows from ETFs
$812 million has been withdrawn from Bitcoin ETFs over the week — the largest outflow since March.
Ethereum ETF interrupted a 20-day inflow, recording a loss of $153 million.
📌 Institutional investors are taking profits amid uncertainty in macroeconomics.
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2. ⚠ Geopolitics and tariffs
Announced new US tariffs against Chinese electronics and chips have caused panic in the stock and crypto markets.
The dollar index (DXY) is rising, demand for gold and government bonds is increasing → capital is leaving crypto.
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3. 🧊 Weak activity in DeFi and Web3
TVL volumes in major DeFi platforms have dropped.
Users are withdrawing liquidity from Ethereum and Solana networks.
Against the backdrop of expectations from Layer 2 solutions, institutional investors are taking a wait-and-see approach.
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4. 💼 Overall change in sentiment
Investors are switching to "risk-off" mode: a mass transition to stablecoins (USDT, USDC).
There is a decrease in volumes on CEX and DEX.
Participants are waiting for signals from the Fed regarding interest rates (possible increase).
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🧠 Conclusion:
The market decline is not due to a single reason, but rather a combination of fundamental factors:
macroeconomics,
regulatory policy,
institutional outflows,
increased pressure on altcoins.
Currently, this is not a crash, but an expected correction after active growth in spring and summer.
Short-term panic is a common phase in the market that strong players use to accumulate positions.
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