Crypto Markets Slide 6% Today: Bitcoin Holds $118K, Spot ETH ETF Inflows Continue

Crypto Market Analysis: Sharp Decline as Macro Risks Resurface

On August 1, 2025, the global cryptocurrency market experienced a notable downturn, shedding approximately 6.7% of its value, which wiped out nearly $160 billion in capitalization. Most major assets moved lower as market volatility spiked and risk appetite diminished.

Bitcoin: Holding $118K Support Amid Pressure

Bitcoin retreated roughly 2.6%, trading near $115,300 after earlier reaching highs above $120,000. While long-term holders appear stable, short-term sellers pressured technical support levels. Key resistance for BTC now appears near the $116K–$118K range, a critical zone for bounce-back sentiment.

Ethereum: Resilience Despite Volatility

Ethereum fell 1.3% to $3,596, yet remains supported above $3,700, largely due to continued institutional inflows via spot ETH ETFs. This marks ETF fund inflows for 18 consecutive days, reaffirming robust demand even amid broader market weakness.

Altcoins: XRP, Solana, and Others in Retreat

XRP declined by approximately 3.6% to $3.07, as investors rotate out of altcoins amid risk-off sentiment. Solana, BNB, and other mid-tier tokens also posted losses between 3% and 5%, highlighting a broad pullback in the altcoin space. The Altcoin Season Index has now retraced to 40, signaling a shift in momentum back toward Bitcoin dominance.

📉 What Triggered the Pullback?

Macroeconomic uncertainty—New global tariff announcements increased investor risk aversion.

Leveraged liquidations—Over $700M in crypto liquidations occurred, with ETH and BTC leading losses.

Whale activity—Major offloading, including large BTC sales, added further pressure on pricing sentiment.

Profit-taking—After weeks of strong rallies, short-term gains spurred rotation into cash positions.

🧮 Market Metrics at a Glance

MetricValueMarket Cap Loss≈ 6% decline (~$160B)Bitcoin (BTC)~$115,300Ethereum (ETH)~$3,596Spot ETH ETF InflowsDay 18 and countingAltcoin Season Index40Liquidation Volume~$721M

✅ Outlook: What Comes Next?

• Bitcoin's Support Zone: Maintaining above $116K will be crucial. A breakdown could expose BTC to deeper corrections.
• ETH ETF Momentum: Continued inflows may anchor Ethereum around the $3,600–$3,700 range despite short-term volatility.
• Short-Term Volatility Ahead: August and September traditionally show consolidation in crypto; macro risks could intensify this trend.
• Reassessing Risk Exposure: Traders and institutions are likely reducing leveraged positions, shifting toward cash-safe assets for now.

✅ Conclusion

Today’s market retreat underscores growing caution among crypto investors, even as Ethereum continues to benefit from consistent institutional support. Bitcoin remains a key anchor, holding within a narrow technical band, while altcoins bear most of the correction. As macroeconomic signals shift, the short-term outlook tilts toward consolidation, though long-term trends—especially driven by ETF adoption and network activity—remain intact.

If you’d like graphical slides, token-specific breakdowns, or chart-based analysis for platforms like Medium or Substack, I’m ready to assist.