Market Calms Before Another Storm?
As we enter August, the crypto markets responded sharply to new U.S. tariffs, erasing recent gains and sparking a risk-off wave across major assets. With nearly $1 billion in liquidations and a total market cap drop of 6%, investor sentiment remains on edge. However, Ethereum’s resilience and select altcoins holding firm suggest that not all narratives are unwinding equally.
Market Overview – August 1, 2025
On August 1, global market capitalization plunged approximately 6%, dropping from about $3.85 trillion to $3.61 trillion, triggered by widespread profit-taking and a geopolitical shock from newly imposed U.S. tariffs. Bitcoin slipped beneath $115,200, while Ethereum, Solana, Dogecoin, and other major altcoins declined up to 8–9% across the board. The sell-off resulted in more than $1 billion in liquidations, highlighting heightened market sensitivity to macro policy shifts and leveraged risks.
Bitcoin (BTC): Breaking Critical Support
Bitcoin now trades around $115,080, down over 3.2% as geopolitical risk rattled investor sentiment. Analysts warn of further downside toward $112K–$110K if support fails, with upside still capped near $120K until sentiment stabilizes. Long-term holders remain undisturbed, but the immediate technical trend suggests asset rotation as bearish momentum gains traction.
Ethereum (ETH): Structural Support Amid Pressure
Ethereum’s ETF ecosystem continued demonstrating strength—even as spot flows dipped temporarily—allowing ETH to outperform BTC on the day. Though Ethereum lost around 4–6%, it traded near $3,665, supported by robust staking fundamentals and ongoing institutional conviction. Analysts argue that this rotation represents a structural outperformance setup, with ETH potentially retesting $3,900–$4,000 if inflows resume.
Solana (SOL): Sharp Drop — Technical Reassessment Required
Solana faced a steeper decline of ~9%, with price dipping below $180, as hype-driven expectations were unwound alongside broader altcoin rotation. ETF related optimism remains intact structurally, but short-term support now resides in the $175–$180 zone. Only a reclaim above $190–$195 would signal recovery potential.
XRP: Holding $3 Threshold Under ETF Uncertainty
XRP pared gains to trade near $3.15, falling less sharply than many peers due to growing corridor utility and ongoing ETF speculation. Analysts view $3.10–$3.20 as key support, with significant upside toward $3.50–$4.00 should institutional or ETF clarity emerge. Its relative strength compared to the broader market dip highlights its unique risk profile.
Dogecoin (DOGE): Meme-Coin Over-Extension Corrects Deeply
DOGE tumbled nearly 8%, dropping toward $0.22 as retail sentiment reversed sharply and technical levels broke down. Support clusters are forming between $0.22–$0.23, yet upside remains distant until volume or developer features, like Doginals or X-based payment integration, kick back in. Sentiment is likely to remain fragile unless macro risk recedes.
Cardano (ADA): Stalwart Foundation Amid Portfolio Rotation
ADA traded near $0.80, down about 5–6%, as capital exited riskier digital assets. Infrastructure updates like Hydra and Mithril hold long-term value, but ADA remains range-bound. Reclaiming $0.85–$0.90 remains critical before any bullish thesis resumes.
Shiba Inu (SHIB): Burn Support Provides Buffer
SHIB edged downward to $0.0000135, down roughly 4%. Token burns and active Shibarium usage continue to confer stability, but sentiment remains weak absent a narrative catalyst. Resistance hovers near $0.00001430–$0.00001450.
SUI: Lowest Dip, Highest Resilience Among Mid-Caps
SUI held up comparatively well, trading near $3.95, supported by developer-led activity and rising TVL, despite a 5–6% drawdown. Analysts are watching $3.80–$4.00 for consolidation, while renewed ETF interest could propel it toward $4.20–$4.40. It remains one of the more structurally healthy charts in the current pullback.
Kaspa (KAS): Correcting Without Loss of Technical Footing
KAS declined around 5%, currently near $0.10, but retains its post-breakout base. The blockDAG model continues to attract attention; a breakout above $0.11–$0.12 remains plausible if sentiment shifts. For now, it appears to be consolidating in a healthy range.
Pi Network (PI): Speculative Sit-and-Wait
PI hovered near $0.438, down modestly. With no immediate catalysts or listing triggers, price remained flat, awaiting key roadmap or listing developments before directional clarity arrives. Investors continue to watch quietly, awaiting a spark.
Snapshot Table – August 1, 2025
| Token | Approx. Price | 1‑Day Change | Outlook |
|---|---|---|---|
| BTC | ~$115.1K | –3.2% | Breaking key support, caution advised |
| ETH | ~$3,665 | –4–6% | ETF resilience underpinned ETF base |
| SOL | ~$180 | –9% | Needs reclaim above $190 for strength |
| XRP | ~$3.15 | –5% | Corridors utility continues to support |
| DOGE | ~$0.22 | –8% | Meme correction steep, support near |
| ADA | ~$0.80 | –6% | Consolidating amid rotation |
| SHIB | ~$0.0000135 | –4% | Burn support holds, momentum subdued |
| SUI | ~$3.95 | –6% | Outperforming peers; ecosystem intact |
| KAS | ~$0.10 | –5% | Base holds; still breakout potential |
| PI | ~$0.438 | –1% | Lacks trigger; rangebound pre‑catalyst |
The Road Ahead: Tariffs, ETF Ripples & Macro Uncertainty
The August 1 downshift is tied to new U.S. trade tariffs and a hawkish tone from the Fed, contributing to $223 million in weekly fund outflows—the first reversal after 15 straight weeks of inflows. Bitcoin ETFs alone experienced $812 million in redemptions, Ethereum ETFs ended a 20-day inflow streak with $153 million exiting, signaling investor caution despite structural interest.
Nevertheless, broader legislative support—such as the GENIUS Act, strategic Bitcoin reserve programs, and regulatory proposals from the Presidential Working Group on Digital Assets—temper long-term uncertainty. Analysts advise that BTC must reclaim $120K–$123K to reinvigorate altcoin participation, while Ethereum and tokens like SUI and XRP may remain selective beneficiaries of institutional rotation even amid sideways conditions.
In this environment, staying diversified, watching key technical levels, and monitoring ETF approvals remain critical for navigating an increasingly nuanced crypto landscape.
Read more: Crypto Market Analysis (July 31, 2025): ETH Climbs, DOGE Corrects, BTC Faces $120K Ceiling
