Bitcoin News Today: Bitcoin Tumbles 4.1% as Macro Uncertainty Spurs Sell-Off

Bitcoin and other major cryptocurrencies experienced a significant price correction last week amid heightened macroeconomic uncertainty and global market volatility. The week saw Bitcoin fall 4.1%, closing at $113,254 by August 2, down from its peak of $119,419 on July 28 [1]. The digital asset registered one of its steepest weekly declines in months, with a single-day drop of $2,133.24—or 1.8%—on August 1 [1]. The decline was driven by a combination of rising concerns over central bank policy, inflationary pressures, and geopolitical tensions, including comments from former U.S. President Donald Trump that triggered panic selling [1].

Altcoins fared even worse than Bitcoin, with the broader cryptocurrency market underperforming by approximately 7.8% over the past month [1]. Despite the sharp drop, Bitcoin retained strong liquidity, with a 24-hour trading volume of $38.89 billion [1]. Analysts pointed to the integration of cryptocurrencies into traditional financial systems as a key factor in the asset class’s sensitivity to macroeconomic signals. As investors increasingly treat crypto as an alternative investment, its price movements have become more aligned with those of equities, commodities, and fiat currencies [1].

The week’s price action highlights the fragility of Bitcoin’s recent recovery from a prolonged bear market. While the asset had shown resilience in early July, the sharp pullback in late July and early August suggests the market remains highly reactive to external economic developments. The 7-day drawdown—from $119,419 to $113,254—underscores the ongoing uncertainty surrounding monetary policy and inflation expectations, which have driven capital away from riskier assets [1].

Source: [1] BTC to USD: Bitcoin Price in US Dollar (https://www.coingecko.com/en/coins/bitcoin/usd)