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- Anjali Belgaumkar
Anjali Belgaumkar
Writer by choice, CryptoCurrency Writer, and Researcher by chance. Currently, focusing on financial news and analysis, as well as cryptocurrency news and data. One may not call me a crypto “Enthusiast” but trust me I'm getting there.
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Qadir AKQadir Ak is the founder of Coinpedia. He has over a decade of experience writing about technology and has been covering the blockchain and cryptocurrency space since 2010. He has also interviewed a few prominent experts within the cryptocurrency space.
- Aug 01, 2025 03:38 UTC
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Why is Crypto Market Going Down Today? XRP Crashes 4% as BTC and ETH Drop
Crypto market cap drops 2.4% to $3.78T as Bitcoin and Ethereum slide, with altcoins facing steeper losses.
Fed’s hawkish stance, $631M liquidations, and Trump tariffs fuel bearish sentiment across global crypto markets.
The cryptocurrency market saw a sharp dip in the last 24 hours, with the global crypto market cap falling by over 2.4% to $3.78 trillion. Top cryptocurrencies like Bitcoin and Ethereum were not spared from the downturn. Bitcoin dropped by more than 2% and is currently trading around $115,957, while Ethereum slipped over 3.6% to $3,717.
Altcoins have taken an even harder hit. Solana (SOL) is down by nearly 4.8%, now priced at $171, while Cardano (ADA) and Dogecoin (DOGE) fell by 4.89% and 5.87% respectively. XRP also saw a drop of around 3.7%. The current sideways action across many tokens has pushed the Altcoin Season Index down to 37 out of 100, meaning that Bitcoin continues to dominate market attention.
Why Are Cryptos Falling Today?
This downturn has been largely triggered by macroeconomic uncertainty, particularly after the U.S. Federal Reserve decided to keep interest rates unchanged while issuing a stern warning about slowing economic growth. Markets had briefly rallied after the White House released a crypto policy report pushing for clearer SEC guidelines, but that faded quickly as the Fed’s message began to sink in.
Adding to the pressure, total liquidations across the crypto market reached nearly $631.98 million. When global economic signals turn bearish, capital tends to move out of riskier assets like altcoins first. With crypto no longer operating in a vacuum, market sentiment is being shaped by the same global forces that drive equities and commodities.
As of August 1st, President Donald Trump’s aggressive tariff strategy is beginning to take effect. While tariffs are traditionally a concern for traditional markets and international trade, their ripple effect is now increasingly being felt in crypto markets. Tariffs often trigger inflationary pressures and destabilize fiat currencies, conditions that sometimes push investors toward Bitcoin and other digital assets as a hedge. However, in the short term, these sudden shocks often lead to liquidity crunches and panic selling, especially in risk-on assets like altcoins.
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FAQs
Crypto markets fell 2.4% due to Fed holding rates, economic warnings, and $632M liquidations. Bitcoin dropped to $115,957 (-2%), Ethereum to $3,717 (-3.6%).
Yes – Fed’s unchanged rates + growth warnings triggered selloff. Crypto now reacts to macro trends like stocks, with $631M liquidations.
Yes – typical risk-off move after Fed news. Bitcoin (-2%) held better than altcoins (-3-6%), showing relative stability during pullbacks.
Recovery likely after macro uncertainty clears – watch for Fed policy shifts (Sept meeting) and ETF inflows. Historically bounces within 2-4 weeks after similar dips.
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