Bitcoin News Today: Bitcoin and Ethereum Fall 6%-9% as Crypto Market Slumps Amid U.S. Tariffs and Fed Uncertainty

The cryptocurrency market experienced a sharp correction in late July and early August 2025, with Bitcoin falling below $113,000 and Ethereum dropping under $3,500. Both assets saw double-digit declines, with Ethereum falling 6% on a single day and Solana shedding 5% in value. The broader market capitalization of cryptocurrencies dipped by 1.23% in 24 hours, bringing the total value down to $3.66 trillion [8]. This marked a significant selloff, with over $500 million in positions liquidated on July 24, particularly on major exchanges like Binance, where a $2.58 million Solana position was automatically closed [5].

The downturn was driven by a combination of factors, including new U.S. tariff proposals and continued uncertainty regarding Federal Reserve policy, which led to a risk-averse trading environment. Institutional selling pressure was also evident, notably in XRP, which dropped nearly 9% during the decline before stabilizing slightly [9]. The price action also coincided with heightened activity in newly launched tokens such as SUI and Ethena, which contributed to increased market volatility.

The market correction had spillover effects into traditional financial markets. Coinbase Global (NASDAQ: COIN) fell 16.7% on July 15, and its stock continued to decline by nearly 2% on August 1 amid broader market weakness [4]. Robinhood Markets (HOOD), despite reporting strong quarterly results earlier in the week, also lost nearly 2% on the same day [3].

Prominent figures in the crypto space responded to the downturn. Arthur Hayes, co-founder of BitMEX, sold over $13 million in digital assets, including ETH, ENA, and PEPE, and suggested that further corrections could be expected in the current economic climate. In contrast, Eric Trump posted on social media encouraging investors to consider the possibility that current prices may present a buying opportunity.

Market participants showed a mixed outlook. While many retail traders stepped back, larger investors, often referred to as "whales," have quietly accumulated Ethereum, indicating that long-term confidence has not completely eroded. The price drop also triggered a broader debate about technical levels, with analysts noting that Bitcoin falling below $115,000—a record monthly close—could lead to a bullish retest if the market stabilizes [6].

The market's fragility was underscored by the scale of liquidations and the rapidity of price declines. As the crypto market navigates multiple pressures—including geopolitical tensions, institutional selling, and the psychological impact of key price thresholds—investors remain cautious, waiting for clearer signals about the next phase of market direction.

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Sources:

[1] Crypto Market Today (https://www.cnbc.com/2025/08/01/crypto-market-today.html)

[3] Bitcoin Slips, Coinbase Stock Drops as Market's Friday Ills Hit Crypto (https://www.investopedia.com/bitcoin-slips-coinbase-stock-drops-as-market-s-friday-ills-hit-crypto-11783339)

[4] Coinbase (COIN) Drops 16.7% as Crypto Prices Fall (https://finance.yahoo.com/news/coinbase-coin-drops-16-7-142136696.html)

[5] Crypto Market Hit by $500M Liquidations as Bitcoin and ... (https://www.xt.com/en/blog/post/crypto-market-hit-by-500m-liquidations-as-bitcoin-and-ethereum-lose-july-gains)

[6] Bitcoin ends record month at $115K with BTC price set ... (https://cointelegraph.com/news/bitcoin-record-monthly-115k-with-price-vertical-august)

[8] Why is Crypto Market Going Down Today? XRP Price Dips ... (https://coinpedia.org/news/why-is-crypto-market-going-down-today-xrp-price-dips-7-btc-and-eth-follow/amp/)

[9] XRP (Ripple) Price Drops 9% But Finds Support at $2.75 ... (https://thetradable.com/crypto/xrp-ripple-price-drops-9-but-finds-support-at-275-after-sharp-selloff-0--v)