Key Highlights:
- Today’s crypto crash has triggered liquidations to $713 million, led by $627 million in long positions. BTC dropped 6%, and Ethereum fell 12.5% from the weekly top.
- Bitcoin lost key support at $116,950. This raised the risk of a further drop to $107,000, with additional corrections in August and September.
- Following the US jobs revision, President Trump fired the Labor Commissioner and accused the data of being politically manipulated.
The US jobs data revision by a staggering 80% for May and June has extended the crypto crash. Following this, Bitcoin (BTC) price slipped to $113K earlier today.
Losses in altcoins have extended even further, as Ethereum leads with a 4.5% drop to $3,500. Bears dominate at the start of August, as historical data warns of further correction.
Crypto Crash Extends Led By BTC, ETH
As we move into August, the cryptocurrency market sees an extended bearish sentiment. With this, the BTC price is correcting 5% from the weekly high of $120K.
The recent BTC sell-off comes with a surge in daily trading volumes above $81 Billion. This hints at a bearish divergence for the largest asset class.
BTC is leading the crypto crash, followed by Ethereum’s 12.5% correction after rejection at $4,000. Crypto analyst Ali Martinez has flagged a notable technical breakdown in the Bitcoin price action.
According to Martinez, BTC has lost the critical support level at $116,950. This is a key threshold for bullish momentum.
After this breach, Martinez noted that the next BTC price stop could be $107,000. This shows that the short-term trajectory looks bearish as of now. The BTC futures open interest has dropped by 2% today to $82 Billion. This showed that traders remain bearish about the future outlook.
Following the recent crypto crash, the total liquidations have shot to $713 Million. Long liquidations alone contributed to over $627 Million, as per Coinglass data.
Altcoins have contributed to even greater liquidations in the last 24 hours. ETH alone is contributing to over $265 Million in long liquidations.
Bitcoin Correction Could Extend Crypto Crash
After a strong July, Bitcoin has seen strong selling pressure since the very beginning of August. Historical data shows that August and September have been the weakest months for BTC price performance.
Over the past 12 years, BTC has recorded losses in eight instances, reflecting a 67% probability of decline.
On the other hand, selling from Satoshi-era Bitcoin whales has continued even further. As per the data from BitInfo Charts, an inactive Bitcoin address has transferred 306 BTC. It was worth approximately $35.37 Million after 12 years of dormancy.
The wallet received the 306 BTC in 2012, when Bitcoin traded at just $77. Thus, the whale has minted a massive 1,493x return on the original investment value of $23,700.
US Jobs Data Revision Rattles Crypto Market
Today’s crypto crash follows the US jobs data revision. According to new data, job cut announcements in the U.S. soared 140% year-over-year in July to 62,075, surpassing the four-year average.
The figure is more than double the July average of 23,584 between 2021 and 2024. So far in 2025, U.S.-based employers have announced 806,383 layoffs, the highest from January-July 2020.
Dr. Erika McEntarfer, Labor Statistics Commissioner, revised the jobs data for May and June, with a -258,000 downward revision. Furious over this downward revision, US President Donald Trump fired the Commissioner of Labour. In his message on Truth Social, Trump wrote:
In my opinion, today’s Jobs Numbers were RIGGED in order to make the Republicans, and ME, look bad — Just like when they had three great days around the 2024 Presidential Election, and then, those numbers were “taken away” on November 15, 2024, right after the Election, when the Jobs Numbers were massively revised DOWNWARD, making a correction of over 818,000 Jobs — A TOTAL SCAM.
Positively, the downward revision for jobs data could force Powell to announce rate cuts. Popular market analyst Benjamin Cowen raised concerns about the rising unemployment rate. He believes it’s more troubling than the recent downward revision of US jobs data.
New entrants to the labor force are really struggling to the find a job. That is the biggest monthly increase this series has ever had going back to 1967, wrote Cowen.
Disclaimer
This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.
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