- The cryptocurrency market dropped sharply on August 1, 2025, with Bitcoin falling below $115,000.
- Dogecoin and Cardano prices both declined by about 8% in the past 24 hours.
- Liquidations across the crypto market totaled $756.9 million for the day, according to CoinGlass liquidation data.
- The downturn followed the Federal Reserve’s announcement to keep interest rates steady and its caution about slow U.S. economic growth.
- The recent bull run after the SEC’s “Project Crypto” initiative was short-lived, with gains quickly reversed by market-wide sell-offs.
The cryptocurrency market saw a significant decline on August 1, 2025. Bitcoin dropped below $115,000, while Dogecoin (DOGE) and Cardano (ADA) followed suit with sharp decreases. The sell-off occurred globally, affecting major coins and investors.
In the past 24 hours, Dogecoin prices fell 8.3% and Cardano was down 8%. Over the past week, Dogecoin dropped 9.4% and Cardano 8.6%, according to CoinGecko’s Dogecoin data. The total market liquidations reached about $756.9 million as per CoinGlass.
The recent dip followed a previous increase, which happened after the U.S. Securities and Exchange Commission (SEC) announced its “Project Crypto” effort to strengthen the country’s crypto sector. Gains from this news were short-lived as the market reversed shortly after, with major cryptocurrencies like DOGE and ADA experiencing notable losses.
According to the article, the downturn may be tied to the Federal Reserve’s decision to keep interest rates unchanged, along with warnings about slow economic growth in the U.S. The move signaled to many that interest rates may not decrease for months, or could potentially rise. This made investors more cautious about riskier assets like cryptocurrencies, as borrowing costs remain high.
DOGE, described as a “memecoin,” is seen as especially risky in this environment and could face further price drops if investor sentiment does not shift. Some recovery in cryptocurrency prices could happen if there is an increase in exchange-traded fund (ETF) inflows, which have recently played a key role in market rallies.
Retail investors may become more hesitant to invest in cryptocurrencies while interest rates stay high and economic growth remains uncertain.
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