Bitcoin’s Dramatic U-Turn Sends Shockwaves Through Global Crypto Markets
Bitcoin set a new record just hours before investors saw its value plummet, shaking confidence in the world’s biggest digital asset.
According to official TradingView figures, Bitcoin reached heights above $124,000 before crashing to $118,724 by August 5, 2025—down 2.86% in a single day.
This volatile turn happened amid surging trading volumes, showing traders rushed to react as fresh U.S. inflation data rattled everyone. A jump in the U.S. Producer Price Index, rising 3.3%, caught markets by surprise.
Investors had hoped for cooling inflation, expecting interest rates might soon fall. When figures suggested otherwise, optimism dissolved.
Traders dumped risky assets like Bitcoin, leading to a wave of forced liquidations where up to $500 million in leveraged bets disappeared within hours. The mood flipped from euphoria to caution faster than it had in months.
Other cryptocurrencies suffered steeper drops as the shock spread. Ethereum (ETH) retreated to $4,614, falling 2.42%. Solana (SOL), XRP, and Litecoin slumped by as much as 7%, outpacing even Bitcoin’s decline.
Memecoins and small projects fell even further. Yet a few smaller tokens—such as SKALE and MYX—escaped this wave, jumping as traders sought quick profits.
Large investors pulled $196 million from Bitcoin ETFs, especially from funds operated by market leaders. Meanwhile, Ethereum ETFs bucked the trend, attracting $73 million in net new investments.
This money shift highlighted a growing institutional focus on Ethereum amid ongoing developments. A closer look at Bitcoin’s technical indicators and charts confirmed the rocky shift.
On the daily graph, a strong reversal appeared after the record high, marked by a large red candlestick. The RSI, a common gauge for momentum, dropped toward neutral territory, clearly signaling that buying strength had evaporated.
The MACD, another key trend tool, turned negative, hinting at new bearish momentum. Moving averages appeared to pause, suggesting the rapid upward trend had reached its limit.
The Bollinger Bands widened during the volatility burst. Immediate technical support now rests between $115,000 and $118,000—a zone traders watch closely.
Shorter-term charts tell the same story. The four-hour view showed Bitcoin falling through important support lines. Metrics did not indicate panic, but buying interest faded. Intraday volumes spiked as sellers took control, locking in profits or cutting losses.
The Global Liquidity Index, shown as a yellow line, slipped downward during the turmoil. That reflected tightening global liquidity, which made it harder for prices to continue rising.
In less than a day, strong optimism about Bitcoin’s record faded. Real-world economic surprises, falling ETF demand, and less market liquidity forced traders worldwide to think twice about risk.
As the dust settled, market participants waited for clearer signals from central banks and the world economy.
Extraordinary Movers
| Coin | Latest Price | 24h Change | Notable Moves & Reasons |
|---|---|---|---|
| BTC | $118,724.9 | -2.86% | Hit ATH $124K+, then crashed under $119K amid inflation data [source] |
| ETH | $4,614.28 | -2.42% | Briefly surged, then retraced as ETF inflows slowed |
| XRP | $3.1264 | -4.58% | Failed breakout after legal optimism; profit-taking |
| SOL | $195.65 | -5.4% | Outperformed previous sessions, then joined selloff |
| LTC | $122 | -7.27% | Sharp drop, following broad altcoin decline |
| DOGE | $0.2306 | -7.12% | Memecoin sector hit hard by high volatility |
| SKL | $0.04481 | +27.59% | Exception; large speculative move, not market-wide |
| MYX | $1.7523 | +28.24% | Singular, isolated pump |
Live Market IntelligenceCrypto — Live Market Board
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Crypto — Live Market Board
-0.26%
| Instrument | Last | Change | YoY | Prev. | High | Low | Volume |
|---|---|---|---|---|---|---|---|
| BTC | 63,384 | -0.26% | -47.24% | 63,552 | 64,346 | 63,305 | 22,774,743,040 |
| ETH | 1,886 | +0.26% | -58.90% | 1,881 | 1,920 | 1,879 | 7,916,475,392 |
| SOL | 75.89 | -0.40% | -60.44% | 76.20 | 76.99 | 75.39 | 1,473,821,056 |
| XRP | 1.01 | -1.15% | -69.07% | 1.02 | 1.02 | 1.01 | 1,144,044,416 |
| BNB | 609.60 | -1.12% | -26.81% | 616.50 | 619.30 | 609.23 | 1,266,706,432 |
| ADA | 0.18 | -1.98% | -78.22% | 0.19 | 0.19 | 0.18 | 238,085,632 |
| DOGE | 0.07 | -1.56% | -70.00% | 0.07 | 0.07 | 0.07 | 553,256,192 |
| AVAX | 6.38 | +1.04% | -74.11% | 6.32 | 6.42 | 6.21 | 248,470,560 |
| LINK | 8.77 | -0.06% | -62.73% | 8.77 | 8.87 | 8.68 | 317,054,880 |
| DOT | 0.78 | -0.75% | -81.11% | 0.79 | 0.80 | 0.78 | 43,490,492 |
| LTC | 45.08 | -0.85% | -65.45% | 45.47 | 45.59 | 44.98 | 143,727,712 |
| BCH | 213.85 | +0.10% | -65.44% | 213.64 | 215.69 | 212.54 | 137,956,688 |
| TRX | 0.34 | +0.28% | -4.73% | 0.33 | 0.34 | 0.33 | 436,576,064 |
| XLM | 0.16 | -1.33% | -64.46% | 0.16 | 0.16 | 0.16 | 89,559,864 |
| HBAR | 0.07 | -0.53% | -74.67% | 0.07 | 0.07 | 0.07 | 22,546,186 |
| NEAR | 1.65 | +2.42% | -40.55% | 1.62 | 1.68 | 1.61 | 187,591,264 |
| ATOM | 1.40 | -2.36% | -70.15% | 1.44 | 1.44 | 1.40 | 18,626,964 |
| AAVE | 89.06 | +0.93% | -72.33% | 88.24 | 90.20 | 88.19 | 129,099,704 |
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