Bitcoin, Ethereum, XRP, Dogecoin All Tumble – What’s Driving Crypto’s Selloff As August Kicks Off?

Bitcoin (BTC) fell more than 3% on Friday in U.S. pre-market hours, with major altcoins like Ethereum (ETH), Cardano (ADA), Solana (SOL), and Ripple’s native token XRP (XRP) following suit. 

Bitcoin’s price fell to $114,870 after ending July at its highest monthly close in history, marking a wobbly start to August. Bitcoin’s current price dipped to $114,322 before recovering. It was most likely also impacted by President Donald Trump’s August 1 deadline for trade deals expiring on Friday and the dollar index (DXY) rising above 100.

The volatility sparked $756.71 million in liquidations over the past day, according to Coinglass data. Most of the liquidations originated from long bets – traders who bet the price would rise, totaling around $100 million. Short liquidations were around $55 million. Ethereum experienced the largest liquidations of $227 million, followed by Bitcoin at $179 million.

The overall cryptocurrency market fell 7.7% over the past day with its valuation dropping to $3.82 trillion. Among major cryptocurrencies, meme token Dogecoin (DOGE), Cardano, and Solana took the biggest hits, falling more than 6% each. Ethereum’s price fell 5.3% over the past day, and XRP’s price dipped 5.5%. 

According to analysts, BTC-USD also filled a “gap” in CME’s Bitcoin futures left over from July. “We should see a nice upward movement now,” crypto investor and entrepreneur Ted Pillows predicted on X. “Now that the gap is tapped, we watch closely,” trader Cipher X wrote on X, flagging $104,000 as a potential downside target if $116,000 was not reclaimed.

Crypto trader, analyst, and entrepreneur Michaël van de Poppe was bullish on the longer-term outlook. The markets have started correcting, “which means that it’s time to accumulate your next positions for the next run,” van de Poppe said in a Friday X post. “ Perhaps August is a month of stabilization, and we'll go back up later in the month for Altcoins and Bitcoin.”

Retail traders on Stocktwits, however, did not appear to be as bullish. Retail sentiment on the platform dipped lower with ‘bearish’ territory over the past 24 hours. 

Crypto-linked stocks were also in the red during pre-market trade on Friday, as the broader market also fell. Shares of Strategy (MSTR), the largest corporate holder of Bitcoin, slipped more than 2%. Bitcoin miner Riot Platforms (RIOT) stock plunged as much as 8% and shares of its peer, Mara Holdings (MARA), fell more than 4%. 

Crypto exchange Coinbase Global’s (COIN) shares plummeted more than 9% in pre-market trade after the company reported its latest earnings after market close on Friday, missing estimates despite the recent Bitcoin bull run. 

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