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- Glassnode data shows that short-term holders accounted for 85.5% of Bitcoin spent volume, with crypto retail players in panic selling mode.
- Despite price declines, liquidations and open interest drawdowns remain modest, suggesting the correction is spot-driven instead of a leverage cascade.
The broader crypto market has faced a strong pullback today with the Bitcoin price dropping 3.5%, retesting the crucial support at $115,000. On the other hand, altcoins have faced even steeper corrections with Ethereum (ETH), XRP, BNB, Solana (SOL), Dogecoin (DOGE), all dropping 7-10% today.
As a result, the overall crypto market liquidations have soared to $756 million in the last 23 hours, with more than $705 million in long liquidations, per Coinglass data.
Crypto Retail Investors Panic As Trump Tariffs Kick In
Just as the Trump tariffs kicked in with the August 1 deadline, heavy selling pressure ensued across the crypto market, with altcoins facing a steeper fall. The market is looking beyond the crypto regulatory development, with the U.S. Securities and Exchange Commission (SEC) launching ‘Project Crypto’ on July 31.
The United States has imposed new tariffs on more than 90 countries following the expiration of a trade negotiation deadline set by Donald Trump. Tariffs on Canadian imports will rise from 25% to 35%, though most goods from Canada remain exempt.
Tariff hikes on Mexican goods have been delayed by 90 days, while Brazil now faces a 50% duty on its exports to the U.S. The broader crypto market is bracing for this impact.
On-chain data shows that crypto retailers have been panic-selling in this market. According to data from blockchain analytics firm Glassnode, short-term holders (STH) accounted for the majority of Bitcoin spent volume over the past 24 hours. This cohort contributed $18.24 billion of sell-offs, or 85.5% of the total $21.34 billion in sell-offs.
On the other hand, long-term holders (LTH) made up just $3.10 billion, or 14.5%, of the volume. The data indicates that the recent sell-off is largely being driven by newer market participants rather than long-term investors.
Will Bitcoin Price Recover From the Support?
The Bitcoin price has crashed to the crucial support at $115,000 level, while filling the CMD gap created previously, as mentioned in our previous story. Market analysts continue to remain hopeful of a bounce back.
Another report from Glassnode shows that despite Bitcoin and Ethereum posting declines of 3.2% and 6% respectively, market liquidations have remained relatively subdued. Bitcoin liquidations totaled $110 million, while Ethereum saw $132 million.
This suggests that the recent downturn is likely driven by spot selling rather than a leverage-driven derivatives wipeout. Open interest drawdowns have also been modest, with no clear indication of a broader leverage cascade at this stage.
Altcoins See Even Steeper Fall
The correction in the altcoin market is even steeper, with the Ethereum (ETH) price crashing 6% to $3,600 support. XRP, Solana (SOL), and Dogecoin (DOGE) have corrected by a similar magnitude of 6-8%. However, these altcoins have dominated crypto conversations in recent times, as reported by CNF. In a message on the X platform, popular analyst Michael van de Poppe stated:
Altcoins are still accumulating as they have barely moved since April. The next retest of their resistance is likely going to bring the breakout. When is that going to happen? After Bitcoin finishes its correction.
