Bitcoin News Today: U.S. Crypto Stocks Plunge 7%–16% as Weak Jobs Data and Tariff Fears Trigger Market Sell-Off

Shares of U.S.-listed crypto companies dropped sharply on August 1 as broader risk assets came under pressure following weaker-than-expected job data and renewed concerns over potential trade policy shifts [1]. Coinbase (COIN), Riot Platforms (RIOT), and CleanSpark (CLSK) fell between 7% and 16% during early trading, echoing a broader market selloff in which the Dow Jones Industrial Average lost over 600 points, the S&P 500 declined 1.6%, and the Nasdaq Composite fell more than 2% [1].

The downturn in crypto equities was closely tied to Bitcoin’s (BTC) pullback below $115,000, having previously reached a peak near $120,000 earlier in the week [5]. This decline was amplified by the perception of crypto stocks as leveraged exposure to Bitcoin’s price movements [1]. Coinbase reported second-quarter revenue of $1.5 billion, but weak transaction volumes and a meager $33 million in net income (excluding investment gains) contributed to its continued slide following after-hours losses [1].

Riot Platforms also saw its stock fall despite strong financials in its second-quarter report. The company more than doubled its revenue to $153 million, with $85.1 million in Bitcoin mining income and earnings per share of $0.98, far above the expected $0.21 loss [1]. However, the broader market selloff overshadowed these results. CleanSpark’s decline followed the market trend, as it had not reported new developments since its May earnings update [1].

The sell-off was driven by a combination of macroeconomic and geopolitical factors. The U.S. nonfarm payrolls report revealed the creation of only 73,000 jobs in July, well below the 100,000 expected by economists [1]. This data triggered renewed expectations of aggressive rate cuts this fall, with the CME Group’s FedWatch tool now pricing in an 80% chance of a September rate cut [1]. However, concerns remain over persistent inflation, as core PCE for June exceeded forecasts, clouding the path toward monetary easing.

At the same time, U.S. President Donald Trump’s recent tariff announcements reignited fears of a trade war ahead of the August 1 deadline for a new agreement. The revised rates, ranging from 10% to 41%, included a 40% tariff on goods rerouted to avoid existing duties [1]. Analysts warned that the combination of weak job growth and rising tariffs could lead to a contracting labor market in the coming months [1].

Bitcoin’s price action also reflected the heightened uncertainty, as the dollar index rose above 100 amid the new tariff measures, further pressuring the digital asset [2]. The crypto fear and greed index remained in “greed” territory, indicating ongoing speculative activity, but analysts have increasingly warned of a potential correction. One analyst predicted a 50% drop in Bitcoin’s price, citing overvaluation risks following its recent rally [3]. Additionally, data from CryptoQuant shows that BTC is experiencing increased profit-taking amid the economic headwinds [5].

Regulatory concerns also contributed to the selloff. New U.S. regulations targeting fraudulent crypto ATM activity have raised investor caution, as digital assets remain highly sensitive to regulatory developments [6]. These pressures were mirrored in traditional markets, with ASML shares falling amid fears that U.S. tariff policies could disrupt global semiconductor supply chains [7].

Throughout the week, U.S. equities remained under pressure as investors digested mixed earnings reports and tariff developments [8]. The cautious environment extended to mutual funds and ETFs, with many reevaluating their exposure to high-risk assets [9]. The broader financial landscape highlights the increasing interconnectedness of global markets, where both crypto and traditional assets respond to the same macroeconomic and geopolitical triggers.

The coming weeks will be critical for investors as they monitor the Federal Reserve’s policy path and the evolution of U.S. trade negotiations. The fragility of risk assets under these conditions underscores the need for careful positioning in an environment of elevated uncertainty.

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Sources:

[1] Bitcoin Drops Below $118.5K as Fed Decision and Tariff ... (https://www.mitrade.com/insights/news/live-news/article-3-999056-20250731)

[2] Bitcoin, Ether Start August on a Shaky Note as Dollar Index ... (https://www.coindesk.com/markets/2025/08/01/bitcoin-ether-start-august-on-a-shaky-note-as-dollar-index-tops-100-yen-hits-4-month-low-ahead-of-nonfarm-payrolls)

[3] Bitcoin Bull Market Is Over? Analyst Calls 50% Crash To ... (https://www.mitrade.com/insights/news/live-news/article-3-1002849-20250801)

[5] Bitcoin Drops to $115K as Third Major Profit-Taking, New ... (https://cryptoadventure.com/asia-morning-briefing-bitcoin-drops-to-115k-as-third-major-profit-taking-new-tariff-tensions-add-pressure)

[6] Citing potential for fraud, blue and red states pass new ... (https://www.yahoo.com/news/articles/citing-potential-fraud-blue-red-131215199.html)

[7] Podcasts Markets (https://profgmedia.com/podcasts-markets/)

[8] Contents - Bloomberg News (https://www.advisorperspectives.com/firm/bloomberg-news)

[9] Mutual Funds and E.T.F.'s - Page 4 (https://www.nytimes.com/topic/subject/mutual-funds-and-etfs?page=4)