Cryptocurrency Markets Continue Slump, Triggering Record Liquidation Volumes
Major cryptocurrencies experienced further losses on Friday, reversing a slight upward trend,
and pushing 24-hour liquidation volumes past the $900 million threshold.
The slides were particularly pronounced for Ethereum and XRP, contributing to widespread margin call activity.
Key Digital Assets
- Bitcoin (BTC) fell from near $120,000 earlier in the week to approximately $113,411, a nearly 5.6% decline.
- Ethereum (ETH) dropped from around $4,000 on Sunday to roughly $3,518, marking a 10.5% fall.
- XRP (XRP) similarly lost about 10.2%, tumbling from $3.32 to a low of $2.92 before stabilizing near $2.98.
Record Liquidation Volume
A total of $905 million in positions were liquidated since Friday evening according to CoinGlass data.
The overwhelming majority, exceeding $823 million, were long positions (bets prices would rise).
Factors Driving the Downturn
Analysts cite a combination of macro factors affecting investor sentiment:
- U.S. Jobs Report: Disappointing Friday morning employment data led President Trump to abruptly fire a Labor Department official involved in releasing the data.
- Global Tariffs: The administration announced broad new tariffs targeting multiple nations.
- Escalating Russia Tensions: Trump ordered naval vessels to near Russian waters in response to threats.
- Internal Market Dynamics: Analysts also point to the ongoing influence of large holders (whales) versus long-term investors.
The onward slide is prompting predictions of potential further declines towards $80,000 and speculations a bottom might be reached by late August before a potential fourth-quarter surge toward $125,000.
Market Sentiment and Prediction
In a bullish view even as prices fell, Myriad users (an affiliated service) predict a higher probability (over 53%) for Bitcoin reaching a new $125,000 peak rather than falling back to $105,000.
