The cryptocurrency market today, August 5, 2025, witnessed a notable divergence in performance, as major currencies faced economic pressures and U.S. trade tensions, while some other currencies showed resilience and strength.
This divergence comes amid a decline in investor appetite for high-risk assets, reflecting a state of uncertainty in global markets.
Performance of Bitcoin and Ethereum:
Despite the positive expectations leading up to this day, Bitcoin (BTC), the largest cryptocurrency by market capitalization, recorded a slight decline of 0.45%, stabilizing at $114,149.8.
This decline reflects the continuation of the uncertainty dominating the market, especially after Bitcoin lost its upward momentum that peaked in mid-July.
In contrast, Ethereum (ETH) has shown more positive performance, rising by 2.78% to reach $3,650.52. The price of Ethereum temporarily surpassed the $3,700 barrier during the day, indicating underlying strength in the currency. This increase is partly attributed to 180 Life Sciences' announcement of raising $425 million to create a private Ether treasury, enhancing confidence in Ethereum's future as an investment asset.
Performance of Altcoins:
The divergence is not limited to Bitcoin and Ethereum; it has extended to other altcoins. Ripple (XRP) saw an increase of 0.39% to record $3.0248, while Binance Coin (BNB) rose by 0.73% to reach $762.60. Dogecoin (DOGE) increased by 0.84% to $0.204856, and Cardano rose by 0.26% to $0.7434.
These slight increases in altcoins indicate that investors might be seeking investment opportunities in less volatile assets or those with specific growth potential, especially amid a decline in risk appetite towards major currencies.
Factors affecting the market:
The cryptocurrency markets are influenced by several key factors, including: Economic pressures and trade tensions: U.S. trade tensions and slowing economic growth play a significant role in diminishing investor appetite for high-risk assets, including cryptocurrencies.
• U.S. Jobs Data:
The weak non-farm payroll data in the U.S. for July, along with negative revisions for the past two months, negatively affected the market. Although this data may reinforce expectations for interest rate cuts in September, it did not provide real support for cryptocurrencies.
• Donald Trump's Trade Policies:
The state of anticipation continues due to U.S. President Donald Trump's trade policies, with the implementation of new tariffs approaching this week. These policies increase geopolitical tension and negatively impact the crypto market.
• Summary:
The cryptocurrency market remains in a state of volatility and uncertainty, as prices are significantly affected by global economic and political factors. Although Bitcoin has seen a slight decline, Ethereum and many altcoins have shown resilience and strength, indicating that the market still holds opportunities for investors with a clear strategy and a deep understanding of the surrounding risks.
