📰 Crypto Market Update – August 1, 2025
🌩️ Market Jolt from Tariff Hikes and Weak Jobs Data
New U.S. trade tariffs targeting nations including Canada and Taiwan sparked a steep sell-off in risk assets. Meanwhile, disappointing July payrolls—only 73,000 jobs added—and significant downward revisions to previous months raised recession fears, shaking investor confidence across markets.
📉 Stocks and Crypto Slide Together
Major indexes took a hit:
Dow dropped about 1.3%
S&P 500 fell roughly 1.5%
Nasdaq slid nearly 2%
Crypto stocks also suffered, with Coinbase shares tumbling around 15%, and Riot Platforms and CleanSpark declining between 7% and 16%, deepening sector weakness.
🪙 Bitcoin Hits Three-Week Low
Bitcoin declined more than 3%, falling below $115,000 to a three-week low near $114,000 after the tariff news and weak economic data. This was accompanied by about $630 million in crypto liquidations, mostly from long positions.
📊 Ethereum and Altcoins Follow Downward Trend
Most major altcoins also posted losses:
Ethereum down around 5%
Solana declined 6% to 9%
XRP, ADA, DOGE all dropped between 3% and 8%
This broad retreat reflects heightened risk aversion across the digital asset space.
🔭 Looking Ahead
Despite the sell-off, institutional inflows into Ethereum spot ETFs remain strong, while Bitcoin ETF flows have turned negative. Analysts anticipate about a 7.3% drop in overall crypto market cap, raising the possibility of BTC dipping toward $100,000. Meanwhile, growing momentum around clearer crypto regulations—such as the White House roadmap and the SEC’s move toward regulated ICOs—is beginning to attract positive attention.
🧭 Key Takeaways
Macro headwinds drove a widespread sell-off in both equities and crypto.
Tariff hikes and weak labor data increased volatility across markets.
BTC, altcoins, and U.S.-listed crypto equities all experienced significant declines.
Institutional flows diverge: strong Ethereum ETF demand vs. Bitcoin outflows.
Regulatory developments from the SEC and White House could support a medium-term recovery.
