Crypto markets saw $1 billion in liquidations after weak US job data and new global tariffs triggered investor panic.
Bitcoin dropped below $115,000 as ETF outflows increased, while Ethereum led liquidations with over $267 million lost.
Solana and XRP held monthly gains despite losses, while the total crypto market cap fell below $3.8 trillion in 24 hours.
Nearly $1 billion in crypto liquidations swept through the market on August 1 as traders reacted to new U.S. tariffs and weak employment data. Bitcoin and Ethereum were at the center of the sell-off that saw most of the major altcoins fall significantly. The volatility of the market increased as traders readjusted their expectations to changes in the macroeconomy.
https://twitter.com/BTC_Archive/status/1951389115015946344 Bitcoin Slides After July Gains as ETFs Reverse Flow
Bitcoin dipped below $115,000 following a new high of $122,800 recorded in mid-July. At press time, BTC price traded between 114,000 and 116,000. Although the fall occurred, Bitcoin was still up 8.1% monthly at the end of July.
ETF flows shifted direction by the end of the month. According to SoSoValue, Bitcoin ETFs saw $115 million in net outflows on July 31. Analysts noted that momentum faded due to profit-taking and weakening inflows.
Ethereum Records Heavy Liquidations Despite ETF Strength
Ethereum ended July with a strong 50% gain supported by growing institutional demand and ETF inflows. Spot ETH ETFs recorded $5.43 billion in net inflows for the month. ETH price failed to break above $4,000 and is currently trading around $3,600.
ETH led the 24-hour liquidation total with $267 million cleared from leveraged positions. Bitcoin followed with $206 million in liquidations. Total market capitalization dropped 8% to below $3.8 trillion during the same period.
Altcoins Fall in Sync While XRP Holds Its Ground
Most large-cap altcoins followed Bitcoin and Ethereum lower during the session. Solana fell 6.5% to $166, bringing its weekly losses in line with its daily drop. However, Solana remains up 10% for July.
XRP stood out with a milder decline of 3%, holding just above $3. It posted a 34% monthly gain and outperformed most major coins. Trading volumes surged to $190 billion across exchanges as liquidations accelerated.
Macroeconomic Pressure Mounts With Weak Jobs and New Tariffs
In July, 73,000 jobs were added in the U.S., and there were subsequent downward revisions of previous months. The unemployment levels increased to 4.2% which raised expressions of concern about diminishing growth. The markets were prompted to anticipate a September Fed rate cut in a short period.
In the meantime, President Trump imposed new tariffs as high as 41% on goods imported to the U.S. from 67 countries. Additional duties on Canadian imports took effect immediately. These events created tension in equities, bonds, and crypto markets.
