Bitcoin News Today: Bitcoin Tumbles 7.5% on $1B ETF Outflows and Tariff Fears

August has opened with turbulence in global markets as macroeconomic risks rise, ETFs experience heavy outflows, and the crypto market faces a bearish correction. The month kicked off with a sharp selloff in Bitcoin, which fell to a three-week low amid aggressive tariff announcements and shifting investor sentiment [1]. The digital asset's price dropped to around $114,000 after nearly $1 billion in ETF outflows over two days, marking the worst outflows in months [3].

Ethereum also faced pressure, falling from the $3,800 level to $3,500 over the past week, though it fared slightly better than Bitcoin, with Ethereum ETFs still recording $154 million in net inflows for the 12th consecutive week [3]. Meanwhile, Bitcoin ETFs saw a reversal in net flows, ending a seven-week positive streak with last week’s outflows totaling $643 million [1].

The market turbulence was amplified by weak U.S. employment data, which showed only 73,000 jobs added in July—well below the expected 110,000. This led to a sharp revision downward of prior months’ job counts, raising concerns about the labor market and accelerating expectations for a Federal Reserve rate cut [1]. According to Polymarket, the probability of a 25-basis-point cut in September now stands at 70%, up from 35% just a week earlier [1].

Arthur Hayes, co-founder of Maelstrom, warned over the weekend that Bitcoin and Ethereum were likely to test key support levels, with BTC potentially falling to $100,000 and ETH to $3,000 before any recovery [3]. Despite these short-term bearish signals, Hayes maintains a long-term bullish stance, projecting that Bitcoin could reach $250,000 by year-end and $1 million by 2028 [3].

The broader market remains sensitive to macroeconomic developments. The U.S. dollar weakened, bond yields declined, and risk appetite increased following the jobs report. Investors are now closely watching the upcoming July S&P Global Services PMI data and the initial jobless claims report, as well as a series of scheduled Fed speakers, for further clues on policy direction [1].

While ETF outflows and trade tensions continue to weigh on market sentiment, some analysts suggest that the current environment reflects a temporary correction rather than a long-term structural shift [6]. However, the ongoing uncertainty around inflation, trade policy, and credit creation is keeping investors cautious, with capital retreating to safer assets and away from high-risk investments [6].

As August progresses, the interplay between macroeconomic data, central bank policies, and asset flows will be critical in shaping the market’s trajectory. For now, the market is in a holding pattern, awaiting clearer signals before making a decisive move.

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Sources:

[1] title1.............................(https://www.mitrade.com/insights/news/live-news/article-3-1009819-20250804)

[3] title3.............................(https://www.binance.com/en/square/post/27816713107338)

[6] title6.............................(https://www.silverbearcafe.com/private/financial.html)