A Rocky Weekend for Crypto Amid Rising Tensions

05.08.25 01:25 PM By Stormrake

To receive the Morning Note in your inbox, subscribe here: https://stormrake.substack.com/
It was a rough weekend for Bitcoin and an even harsher one for altcoins. Saturday brought a continuation of the bearish price action, compounded by further escalations in US-Russia tensions.

The bears had already seized control, driving Bitcoin below $114K. Pressure intensified as Trump’s threats of expanded sanctions were largely dismissed, with Indian officials announcing on Saturday night that they would continue buying Russian gas despite US warnings. This dragged Bitcoin back to $112K, the previous all-time high and a key pullback level we highlighted in our July Rake Review. Altcoins fell even harder, cementing bearish dominance across the market. Spot holders are feeling the pain, but leveraged traders were hit the hardest, with over $1 billion in liquidations over the weekend, 90% of which were long positions. Another costly reminder of the risks of leverage.

Even the strongest altcoins have seen deep retracements, with some tipping into correction territory. Market leaders like Solana, Hyperliquid and Sui, which were driving momentum over the last month, have each corrected over 20% in recent weeks. By comparison, Bitcoin is down just 8% from its July all-time high. It is a sharp reminder that even during altseason, bull market corrections tend to punish altcoins far more than Bitcoin.

Sunday offered a brief reprieve as many altcoins managed to reclaim Saturday’s losses, with most engulfing the prior day’s red candles. Yet, the bears still hold the upper hand while Bitcoin trades around $114k. We now enter what could be a volatile week, with geopolitical tensions dominating investor sentiment. Markets remain on edge, knowing a single statement from Trump could trigger fresh uncertainty.

Stick to your plan, maintain your long-term conviction and view these pullbacks and altcoin corrections as opportunities to accumulate discounted positions.

Stormrake Spotlight: Hedera (HBAR) ($0.248)

HBAR had a rough Saturday, breaking its bullish structure by creating a lower low. However, Sunday saw a strong recovery, with HBAR rallying over 7.5%, restoring some bullish momentum. Despite the break in structure, bears have not taken full control either. The key battleground remains at $0.30, if HBAR can print a new high above this level, bullish structure will firmly resume. A failure to do so would leave the door open for bears to reclaim control.

BTC/USD Key Levels and Price Action:

Bitcoin has bounced from the previous all-time high support at $112K and is attempting to regain bullish momentum. A sustained move above the short-term moving averages could see sentiment shift in favour of the bulls. However, a true structural recovery will only be confirmed if BTC can reclaim July’s range by holding above $116.5K.

BTC Total ETF Flows for 3 Aug: (not available at the time of writing)

(ETF flow data is sourced from https://farside.co.uk/btc/ and reflects figures at the time of writing.)
To receive the Morning Note in your inbox, subscribe here: https://stormrake.substack.com/

*All prices are denominated in USD unless stated otherwise*

Written by Alexandar Artis

Create a brokerage account today

No Advice Warning 

The information in this newsletter is general only. It should not be taken as constituting professional advice from the author - Stormrake PTY LTD.
Stormrake is not a financial adviser and does not provide financial product advice. You should consider seeking independent legal, financial, taxation or other advice to check how the information relates to your unique circumstances. Stormrake is not liable for any loss caused, whether due to negligence or otherwise arising from the use of, or reliance on, the information provided directly or indirectly, by this newsletter.
 

Disclaimer 

All statements made in this newsletter are made in good faith and we believe they are accurate and reliable. Stormrake does not give any warranty as to the accuracy, reliability or completeness of information that is contained here, except insofar as any liability under statute cannot be excluded. Stormrake, its directors, employees and their representatives do not accept any liability for any error or omission in this newsletter or for any resulting loss or damage suffered by the recipient or any other person. Unless otherwise specified, copyright of information provided in this newsletter is owned by Stormrake. You may not alter or modify this information in any way, including the removal of this copyright notice.

Copyright © 2024 Stormrake Pty Ltd, All rights reserved

Stormrake