Cryptocurrency Bitcoin Approaches $115,000 Mark, Leaving Crypto Markets in a State of Ambiguity: Report from Market Watch
Cryptocurrency Market Fluctuates Amidst Geopolitical Tensions and Economic Uncertainties
The cryptocurrency market is experiencing a complex and dynamic landscape in August 2025, with key factors shaping its behaviour. Geopolitical conflicts, trade tensions, and the state of the US economy are influencing investor sentiment, causing volatility and unpredictability.
Over the past 24 hours, Bitcoin (BTC) has shown a modest increase of approximately 0.8%, flirting with the $115,000 level. However, sellers attempted to push Bitcoin's price below $114,000, but were unsuccessful. The volatility in Bitcoin's price has been relatively minimal over this period. Meanwhile, Ethereum (ETH) has gained around 2.6%, resolving some volatility to the upside.
BTC accounted for $18 million in liquidations over the past 24 hours, while Ethereum (ETH) accounted for $50 million worth of liquidated positions. The total number of liquidations over the past 24 hours was around $146 million, which is less than what's typical, indicating subdued trading activity across the derivatives markets.
The markets are consolidating, waiting for further clarity on tariffs and the direction of the US Federal Reserve policy regarding interest rates. Currently, Polymarket indicates a 79% chance of a 25 bps rate cut in September by the US Federal Reserve.
The global tension, largely provoked by ongoing geopolitical conflicts and trade hurdles, has had an impact on the cryptocurrency market. The state of the US economy is a fundamental consideration behind the recent market moves in crypto. Regulatory clarity and legislative progress have triggered a rebound in sectors like DeFi and stablecoins, driving growth in DeFi TVL (+23.63%) and stablecoin market size (+5.1%) in July 2025.
However, withdrawal from Bitcoin ETFs ($1.2B in early August) has intensified selling pressure on BTC short term, contributing to recent Bitcoin price weakness (-5% in August 2025). Market dynamics around Bitcoin include long-term holders ("whales") taking profits, notable BTC whale movements, and futures sell pressure.
In the altcoin and NFT markets, Ethereum leads recovery with gains in DeFi and NFTs, while some chains like Polygon see declines. Following regulatory clarity (e.g., Ripple-SEC settlement), XRP experienced a major rally but has recently seen profit-taking pressure and price declines aligning with broader market weakness.
The crypto market capitalization is reaching record levels, indicating growing institutional adoption and the perception of crypto as part of long-term investment strategies, especially in the US retirement market. However, risks remain due to volatility, particularly for more speculative assets like Ethereum.
Despite the uncertainties, the broader cryptocurrency market remains relatively uncertain, with the bulls seemingly having the upper hand for the past 24 hours. Dogecoin (DOGE), XLM, SUI, SOL, LINK, BNB, and many other leading altcoins are gaining between 1% and 5%. The cryptocurrency heatmap shows most altcoins trading in the green, but there is nothing extraordinary from the large caps.
In summary, regulatory optimism and institutional adoption are supporting a renewed risk-on environment in crypto, but geopolitical and macroeconomic uncertainties plus internal market profit-taking are creating short-term volatility, particularly impacting Bitcoin. Altcoins tend to outperform Bitcoin in this context due to more speculative interest and event-driven rallies. The balance of these factors is driving a complex, dynamic landscape in cryptocurrency markets in August 2025.
[1] CoinMarketCap - https://coinmarketcap.com/ [2] CoinDesk - https://www.coindesk.com/ [3] The Block - https://www.theblockcrypto.com/ [5] Bloomberg - https://www.bloomberg.com/
- The cryptocurrency market is experiencing complex dynamics, with Bitcoin showing a modest increase and Ethereum gaining more, influenced by geopolitical tensions, trade uncertainties, and the US economy.
- Over the past 24 hours, Bitcoin and Ethereum accounted for a combined $168 million in liquidations, signifying subdued trading activity, while the total number of liquidations was lower than usual, indicating less activity across derivatives markets.
- Regulatory clarity and legislative progress have resulted in a rebound in sectors like DeFi and stablecoins, driving growth in DeFi TVL (+23.63%) and stablecoin market size (+5.1%) in July 2025.
- Withdrawal from Bitcoin ETFs and internal market profit-taking have contributed to recent Bitcoin price weakness, while altcoins tend to outperform Bitcoin in times of uncertainty due to more speculative interest and event-driven rallies.
- Despite the uncertainties, regulatory optimism, institutional adoption, and a renewed risk-on environment are supporting cryptocurrency markets, but geopolitical and macroeconomic uncertainties are creating short-term volatility, particularly impacting Bitcoin and larger altcoins.
