Bitcoin News Today: Bitcoin Falls Below $118,000 as Macro Uncertainties and Trump Tariffs Spur Market Selloff

The cryptocurrency market has experienced significant turbulence over the past 24 hours, as bearish sentiment intensified amid growing concerns about the Federal Reserve’s independence and the potential implications of U.S. tariff policies. Bitcoin (BTC) fell below $118,000 for the first time since the start of the year, reaching an intraday low of $114,758 before stabilizing at around $114,694. The broader market mirrored this downward trend, with Ethereum (ETH) dropping nearly 5% to $3,680 and Solana (SOL) declining by 7% to $168. Ripple (XRP) and Starknet (STRK) also saw sharp declines, falling 6% and almost 2%, respectively [1].

This selloff followed a mixed week of price movements for BTC, which started with a bullish push above $119,000 but failed to maintain the momentum. Despite a brief recovery over the weekend, selling pressure intensified as macroeconomic uncertainties and Trump’s proposed tariffs created market unease. Some analysts have warned that if the current bearish trend continues, BTC could fall below $100,000, citing historical patterns of price correction during August and September [1].

Meanwhile, the U.S. Securities and Exchange Commission (SEC) announced the launch of “Project Crypto” to modernize regulatory oversight for digital assets. SEC Chair Paul Atkins emphasized the initiative’s goal of reshaping the regulatory environment to attract crypto businesses back to the U.S. and foster innovation without stifling competition. The plan includes easing licensing requirements for brokerages and granting regulatory exemptions to early-stage projects, potentially legitimizing the asset class and encouraging institutional participation [1].

South Korea has also taken regulatory steps to address risks in the crypto lending sector. Financial regulators announced the formation of a task force to establish stricter guidelines for leveraged lending products, following the launch of new services by major exchanges like Bithumb and Upbit. The initiative aims to protect investors from excessive leverage and ensure adequate safeguards [1].

In terms of market performance, Coinbase reported $1.5 billion in revenue for Q2 2025, marking a 3.3% increase year-over-year but a 26% decline from the previous quarter. The drop was attributed to weaker retail activity and underperformance across key metrics, including trading volume and earnings per share. However, the platform saw growth in subscription and services revenue, particularly from its stablecoin partnerships [1].

A CoinDCX employee was arrested in connection with a $44 million hack, following an internal investigation that revealed compromised login credentials. The arrest of software engineer Rahul Agarwal has drawn attention to the vulnerabilities within crypto infrastructure and the potential legal and operational risks for exchanges [1].

Ethereum’s price action has been more resilient compared to BTC, despite the broader bearish trend. Institutional demand for ETH has increased, with companies like BitMine and SharpLink Gaming actively buying the asset. Analysts believe that as long as ETH remains above $3,500, its bullish structure could remain intact [1].

Solana and Ripple have both faced intensified selling pressure, with SOL dropping below $170 and XRP falling below $3. The altcoins have seen increased volatility as ETF issuers submit updated regulatory filings, indicating ongoing engagement with the SEC [1].

Starknet (STRK) has also been volatile, fluctuating between sharp declines and minor recoveries. After a brief rebound over the weekend, STRK settled back in bearish territory, trading around $0.114 [1].

The crypto market remains under pressure, with macroeconomic uncertainties and regulatory developments playing a central role in shaping investor sentiment. As the U.S. and South Korea move to regulate the space more effectively, the long-term impact on market dynamics will depend on the balance between oversight and innovation [1].

Source: [1] Crypto Price Analysis 8-1: BITCOIN: BTC, ETHEREUM: ETH, SOLANA: SOL, RIPPLE: XRP, STARKNET: STRK (https://cryptodaily.co.uk/2025/08/crypto-price-analysis-8-1-bitcoin-btc-ethereum-eth-solana-sol-ripple-xrp-starknet-strk)