Vishnu Impossible

Bitcoin’s Summer Slump: Flash-Crash to ~$113K — What Triggered the Bearish Flip?
By [Your Name], August 3, 2025
1 | What just happened?
July 14 peak: Bitcoin reached an all‑time high at $123,218.
August 1 crash: BTC plunged nearly $10K in a single swing—closing near $113,100, down ~2.5% in 24 hours.
2 | The Triggers Behind the Dip
🔻 Macro & Monetary Shifts
Despite strong economic data, the Federal Reserve held rates at 4.25–4.50%, cooling speculation around a September cut. The market repriced rate‑cut probability lower—from ~75% to ~43%, increasing bearish tone.
⚠️ Liquidation Cascade
Over $15 billion in futures open interest was wiped out across BTC & ETH in just two days.
Crucially, Binance funding rates flipped negative—BTC at -0.003% and ETH at -0.006% on August 1—indicating shorts were so dominant that they paid longs to hold positions. This added fuel to the dip.
Retail Panic & Whale Divergence Binance net taker volume turned sharply negative toward –$80M, signifying more sell orders than buys. Retail traders’ fear spiked.