đŸš© Why the Cryptocurrency Market Is Dropping

1. New U.S. Tariffs & Macro Uncertainty

The Trump administration recently introduced sweeping tariffs—10% across many goods and a 35% levy on Canadian imports—raising fears of global inflation and rattling equity markets. Crypto, being considered a high-risk asset, took a sharp hit as investors pulled back amid heightened volatility .

2. Widespread Liquidations and Profit-Taking

Over $600–800 million in leveraged crypto positions were liquidated, with many long trades unwound as prices broke below key support zones. Combined with profit-taking after Bitcoin’s July high near $123K, this accelerated the decline across major coins including Bitcoin, Ethereum, Solana, and Dogecoin .

3. Fed Rate Outlook & Weak U.S. Jobs Data

Despite below-expectation nonfarm payroll figures, the Fed showed no urgency to cut interest rates. Investors are anxious about inflation and central bank responses, which is tightening liquidity and reducing appetite for speculative assets .

4. Token Unlocks & Supply Pressure

Tokens like SUI (worth ~$167M) and upcoming unlocks from Aptos and Avalanche are entering circulation this month. Although smaller than July’s $6.3B unlock wave, the added sell pressure is still weighing on prices, especially for smaller altcoins .

5. Regulatory Fears & Industry Friction

Tensions are rising between crypto firms and U.S. regulators. Venture capital firms like Andreessen Horowitz have voiced concerns over pending legislation like the GENIUS and CLARITY Acts. The industry is watching carefully as the regulatory environment shifts quickly—adding to short-term investor anxiety .

📉 Market Snapshot

Bitcoin has slipped below $115K, down ~6% from July highs around $122K–$123K; technical support zones cluster around $112K–$115K .

Ethereum and many altcoins Dived 5–9% in the past 24 hours; some analysts describe the dips as potential consolidation before recovery .

Total crypto market cap fell to ~$3.65–3.8 trillion, shedding ~$60–70B in market value as risk assets faltered .

✅ Summary Table

Factor Impact

Tariffs & weak macro data Triggered risk-off sentiment and volatility

Liquidations & profit-taking Accelerated the price drop across cryptos

Fed policy & job weakness Limited liquidity and dampened bullish sentiment

Token unlocks Increasing circulating supply adds rollover pressure

Regulatory uncertainty Undermined confidence in the overall framework

⏳ Outlook & What Comes Next

There remains a tentative bullish outlook later this month if institutional inflows, ETF demand, or bullish technical signals emerge. But near term, volatility is expected to remain high, especially around key macroeconomic events (e.g. CPI on Aug 12, Fed messaging at Jackson Hole later in August), and further token unlocks .

Bottom line: Today's crash is a confluence of macro risk, regulatory uncertainty, leveraged liquidations, and token supply pressure. The market is undergoing a technical pullback—whether it turns into deeper correction will depend on upcoming economic signals and capital flows.