Bitcoin News Today: Crypto Market Slumps 6.6% as Macroeconomic Pressures and Tariffs Spur Sell-Off

The global cryptocurrency market experienced a significant decline on August 1, 2025, as macroeconomic pressures and shifting investor sentiment fueled a broad sell-off. Total market capitalization dropped 6.6% to $3.8 trillion, with over $629 million in liquidations reported for Bitcoin, Ethereum, and other major tokens [1]. Bitcoin fell 2.4% to $115,354, while Ethereum dropped 4.1% to $3,702. Solana, XRP, and Cardano each lost roughly 5%, indicating a widespread retreat across the sector [1]. The Crypto Fear and Greed Index also declined 6 points, reaching 75, reflecting heightened investor anxiety.

The sell-off was largely driven by evolving macroeconomic conditions. Markets are now factoring in a prolonged period of high U.S. interest rates, with recent economic data reducing expectations for imminent rate cuts. This shift has prompted investors to move capital away from high-risk assets like cryptocurrencies and toward safer options such as bonds [1]. At the same time, new U.S. tariffs, which took effect on August 1, added to the bearish sentiment. The tariffs—ranging from 25% on Indian goods to 50% on key materials like copper—are expected to disrupt global supply chains, particularly in industries related to crypto mining and hardware manufacturing. The U.S. Trade Office estimates these measures could elevate consumer prices by 2.1–3% in the short term [1].

On-chain activity also contributed to the downturn. On July 31, five Bitcoin wallets from April 2010—some of the oldest in the network—moved 250 BTC, valued at nearly $30 million, to two new addresses. These movements, while rare, are often interpreted as potential signals of market shifts. Additionally, long-term holders have been increasingly active, with large wallet movements raising concerns about future selling pressure [1].

Short-term Bitcoin holders are showing clear signs of capitulation. Market analyst Darkfost noted that over 50,000 BTC were in the red as of July 15, and more than 37,000 BTC remained underwater by July 25. CryptoQuant analyst Maartunn also reported that over 223,000 BTC moved into short-term wallets in the past month, likely due to profit-taking or a shift in investor positioning [1]. These developments underscore a growing sense of unease among retail and speculative traders.

Technical indicators further confirmed the deteriorating market conditions. The average crypto market relative strength index dropped to 35.4, signaling weakening momentum for major tokens. Open interest, which measures the total amount of leveraged positions, fell 3% to $193 billion, suggesting reduced speculative activity and increased caution among traders [1].

The market’s reaction to these developments points to a continuation of volatility in the near term, as investors remain attentive to macroeconomic shifts and on-chain activity for further signals.

Source: [1] Why is crypto down today? Liquidations hit $629M BTC, ETH, XRP dip (https://crypto.news/why-is-crypto-down-today-liquidations-hit-629m-btc-eth-xrp-dip/)