Bitcoin Tumbles, Crypto Markets in Panic – Will XRP Be Next to Crash?

The final weeks of August 2025 brought turbulence to the crypto market, shaking investor confidence and wiping out billions of dollars in value. Bitcoin, the largest digital asset, fell more than 5% in just a few days. This decline triggered panic selling across other major cryptocurrencies such as Ethereum and XRP, sparking fears that September, traditionally a difficult month for Bitcoin, could once again bring losses.

At its lowest point, Bitcoin dropped below $110,000, before partially recovering to around $109,000. The rapid fall erased over $100 billion from the global crypto market, highlighting how quickly sentiment can change in this space. Within 24 hours, liquidations of leveraged positions exceeded $940 million, with many traders forced out of their bets. The timing of the drop added to worries, as September has historically been a weak month for Bitcoin, averaging declines of nearly 3.8% since 2013.

Whale Activity and Crypto Markets Reactions

The volatility actually began earlier in the month. On August 5, 2025, a massive Bitcoin sale of $2.7 billion by the whale, caused a flash crash that erased nearly $200 billion from the market’s value in a single day. On-chain data from CoinGlass confirmed that most of the $940 million in liquidations came from long positions, meaning many traders who had bet on prices going higher were caught off guard.

Bitcoin tested support around $107,000, while traditional financial markets also faced turbulence due to court rulings on illegal U.S. tariffs. Ethereum, the second-largest cryptocurrency, fell by about 8%, and Solana also dropped significantly. Sentiment worsened, with the popular Fear and Greed Index slipping to 39 (Fear), a clear sign that investors were becoming nervous.

This fear was compounded by ongoing scams in the crypto industry. Reports noted that meme coin rug pulls, fraudulent projects that vanish with investor money, drained about $143 million during this period. Combined with political uncertainty and regulatory pressure, the environment set the stage for more instability.

XRP’s Struggles in the Shadow of Bitcoin

Among major cryptocurrencies, XRP has been particularly vulnerable. After reaching a high of $3.66 in July 2025, XRP has since fallen back to around $2.73, a decline of about 4% in late August alone. Analysts warn that if XRP fails to hold above $2.80, it could slip further to around $2.17, which would represent a 25% decline. This prediction is based on technical indicators such as Fibonacci retracements and the 50-week moving average.

On-chain data adds to the concern. Between July and August, about $1.9 billion in XRP was sold, a figure that explains the 15% decline in July and the negative sentiment that followed. Ripple’s ongoing escrow policy, which periodically releases large amounts of XRP into circulation, has been criticized by traders who argue it adds selling pressure. At the same time, Ripple is still facing regulatory challenges with the U.S. Securities and Exchange Commission (SEC), which adds legal uncertainty for investors.

XRP’s struggles are tied closely to Bitcoin’s performance. As long as Bitcoin controls over 55% of the market’s value, other assets are highly sensitive to its price movements. This means that any sharp fall in Bitcoin often triggers corresponding declines in assets like XRP, Ethereum, and Solana.

The September Question: Will History Repeat?

A big question now facing the crypto community is whether September will once again bring heavy losses. Historically, Bitcoin has averaged a decline of 3.77% during September. If this pattern holds, traders expect further corrections in the weeks ahead. Additional factors such as U.S. Federal Reserve interest rate decisions could either amplify the downturn or provide a surprise lift if markets respond positively.

Despite the fear, some observers believe the market could recover sooner than expected. Optimists point to the potential of institutional adoption, especially with discussions around the CLARITY Act, a policy framework aimed at bringing more regulatory certainty to cryptocurrencies. If such measures gain traction, Bitcoin could defy its historical September weakness. In this scenario, XRP might also benefit, possibly climbing back toward $3.50 if its support levels hold firm.

Timeline of Key Events

• August 5, 2025: A $2.7 billion Bitcoin whale dump sparks a sharp market crash.

• Mid-August 2025: False rumors about President Trump lead to $400 million in liquidations.

• Late August 2025: Market sentiment falls as the Fear and Greed Index hits 39.

• September 2025: Investors brace for possible declines, given Bitcoin’s negative September track record.

Lessons From the Turmoil

Recent market swings show how sensitive cryptocurrencies are to rumors, large investor actions, and economic uncertainty. While Bitcoin’s long-term reputation still draws interest from big institutions, its price can change quickly in the short term. XRP, on the other hand, often follows Bitcoin’s trends but faces its own hurdles, such as ongoing regulatory issues.

As the market moves into September, this period will test how well cryptocurrencies can handle stress. If past patterns hold, there could be more difficulties ahead. However, if more institutions get involved and rules become clearer, both Bitcoin and XRP could recover, helping restore investor confidence.