Bitcoin News Today: Bitcoin Falls 2.0% Amid Trump Tariffs and ETF Outflows

Bitcoin's price experienced a notable correction in late July and early August 2025, with the cryptocurrency falling below $115,000 and reaching a low of $112,700 on August 1. The decline followed a period of consolidation and was driven by a combination of macroeconomic concerns and shifting investor sentiment [1]. The correction began on July 31, hours after the U.S. Federal Reserve decided to maintain its interest rate policy despite a positive GDP report for the second quarter. While the decision was in line with expectations, it signaled a lack of stimulus, contributing to the downward pressure on BTC [1].

President Trump's recent tariff announcements also played a pivotal role. Starting on August 1, new tariffs came into effect, with additional adjustments, including higher levies on Canadian goods and the inclusion of new countries. These developments heightened global economic uncertainty and exacerbated market volatility [1]. Trump further stirred the markets with his announcement of deploying two nuclear submarines near Russian strategic locations, in response to a warning from former Russian President Dmitry Medvedev. The move, while primarily geopolitical, amplified the perception of instability and weighed on risk assets [1].

Retail and institutional investor activity also contributed to the selloff. On July 31, reports indicated a significant sell-off by individual investors, who began offloading large portions of their Bitcoin holdings. This behavior was mirrored by participants using spot Bitcoin ETFs, which experienced a net outflow of $114.8 million on July 31. The trend continued on August 1, with ETFs losing $812.3 million in a single day—the largest such outflow since February 25 [1]. These movements suggest a loss of confidence in the short-term direction of Bitcoin amid macroeconomic headwinds.

The broader market also reacted to Trump’s tariff policy. The cryptocurrency market saw a 7% decline during the period, with Bitcoin falling below $115,000 and Ethereum and Solana dropping by 6–5% [2]. The selloff reflected a shift toward safer assets and a reassessment of risk appetite. Trump’s assertion that recent U.S. jobs data was “rigged” by a Biden appointee further deepened investor concerns [1].

Despite the recent decline, Bitcoin remains within a defined trading range, holding above key technical levels. Analysts note that while the correction could be part of a normal market cycle, the convergence of macroeconomic factors and investor sentiment suggests a more cautious outlook in the near term. The trajectory of U.S. monetary policy, geopolitical developments, and ongoing retail and institutional behavior will likely continue to shape Bitcoin's price movement [1].

Source: [1] From Tariffs to ETFs: 5 Catalysts Behind Bitcoin’s Big Drop (https://cryptopotato.com/from-tariffs-to-etfs-5-catalysts-behind-bitcoins-big-drop/) [2] Trump Tariffs Trigger Crypto and Equity Market Sell-Off (https://www.ainvest.com/news/bitcoin-news-today-trump-tariffs-trigger-crypto-equity-market-sell-2508/)