$BTC The cryptocurrency market, including Bitcoin (the biggest digital currency by value), has had a tough few days.
Since Thursday, Bitcoin has been in a "correction" (a drop in price after a period of stability), falling from $119,000 to $112,700 by Friday evening—the lowest since July 10.
This drop happened after Bitcoin had been steady for a few weeks.
Possible Reasons for the DropMacro Reasons (Big Economic Factors)U.S. Federal Reserve DecisionOn Wednesday, the U.S. Federal Reserve (the bank that controls U.S. interest rates) decided not to lower rates, even though President Trump wanted them to.
This was expected, and despite a good U.S. economic report (GDP for Q2), Bitcoin’s price dropped a bit that night.
The refusal to change rates might be a key reason for the ongoing price fall.
Trump’s New TariffsStarting August 1 (Friday), Trump introduced new taxes (tariffs) on goods from other countries.
He also added last-minute changes, like raising tariffs on some Canadian products.
These changes might be making the global economy shaky, affecting Bitcoin.
Nuclear Submarine MoveOn Friday evening, Trump ordered two nuclear submarines to be placed near Russia due to a speech by Dmitry Medvedev (former Russian President) about the risk of war between nuclear countries.
This tension could be scaring investors, adding to Bitcoin’s drop.
Bonus Macro FactorsIndia’s Oil Deal: India said it will keep buying oil from Russia despite Trump’s warnings, which might add to global uncertainty.
Job Numbers Controversy: Trump claimed the U.S. jobs report on Friday was “rigged” by a Biden appointee to make him and Republicans look bad, causing more market confusion.
Sell-Off Reasons (People Selling Bitcoin)Retail Investors SellingOn Friday, regular people started selling large amounts of their Bitcoin, possibly panicked by global news.
Spot Bitcoin ETF WithdrawalsInvestors using Bitcoin Exchange-Traded Funds (ETFs) also sold off.
On Thursday, $114.8 million left these funds, ending a five-day positive streak.
On Friday, a huge $812.3 million was withdrawn—the worst single-day loss since February 25.
