Cryptocurrency Prices See Sharp Correction Today — What’s Causing It?

The digital asset market recorded a significant decline on Friday (08/29/2025), with nearly 95 out of the top 100 cryptocurrencies weakening over the past 24 hours. Bitcoin (BTC) corrected by around 3%, breaking below the USD 110,090 support level and is now trading at approximately USD 107,444 (as of 08/30), after previously hitting a peak above USD 124,000 in early August. Ethereum (ETH) has also fallen by 7% over the past week, followed by XRP, which declined by 5.5%.

Factors Behind the Crypto Market Correction

1. Surge in Liquidations and Leveraged Positions
   Over the last 24 hours, the volume of liquidated leveraged positions rose by 102% to USD 529 million, while open interest remained above USD 200 billion. Forced liquidations of long positions on major platforms such as Binance and OKX added further selling pressure to the market.
    

2. U.S. Inflation Data Remains Elevated
   The latest U.S. inflation report showed core inflation rising by 0.3% in July 2025, while headline inflation increased by 0.2%. These figures have raised concerns that the Federal Reserve is unlikely to cut interest rates in the near term, putting pressure on sentiment toward risk assets, including cryptocurrencies.
    

3. Bitcoin Breaks a Key Support Level
   Bitcoin’s price fell below the primary support zone at USD 110,000. Analysts have noted that if the USD 109,000 level fails to hold, a deeper correction is very likely before any recovery can take place.
    

This correction underscores that the cryptocurrency market remains highly vulnerable to volatility and is influenced by a combination of macroeconomic factors and internal market dynamics. Investors are advised to stay cautious by applying proper risk management strategies, including portfolio diversification and the use of stop-loss orders, to preserve investment value amid ongoing uncertainty.