The drop in BTC, ETH, and SOL on August 1, 2025 was partly triggered by America’s new import tariffs (taxes) on India.
Here’s the connection in simple terms:
U.S. announced fresh tariffs on certain Indian goods.
This increased global market uncertainty and created a risk‑off mood — meaning investors pulled money from risky assets like crypto.
Institutional investors and funds sold crypto positions (especially Bitcoin ETFs) to reduce exposure.
The selling pressure spread to altcoins like Ethereum and Solana, causing them to fall too.
So while macro factors (like global interest rates and stock market volatility) were also in play, the U.S.–India tariff news was a key spark for August’s early downturn.