Bitcoin News Today: Crypto Stocks Plunge 7%-16% Amid Tariff Fears and Weak Payrolls Data

Shares of US-based cryptocurrency companies fell sharply on Friday amid a broader sell-off in risk assets, as fears of renewed US tariff measures and weaker-than-expected economic data fueled investor caution [1]. Coinbase (COIN), Riot Platforms (RIOT), and CleanSpark (CLSK) all saw declines ranging between 7% and 16% during the session [1]. The broader market mirrored the losses, with the Dow Jones Industrial Average dropping over 600 points, the S&P 500 falling 1.6%, and the Nasdaq Composite losing more than 2% in early trading [1].

The sell-off in crypto stocks followed a similar trend in the underlying digital asset market, as Bitcoin dropped below $115,000 on Friday, down from a recent high of nearly $120,000 earlier in the week [1]. Coinbase's stock was hit particularly hard after its quarterly earnings report, which showed $1.5 billion in revenue for the second quarter but a significant drop in transaction volumes [1]. While the company reported a headline net income of $1.4 billion, excluding investment gains, net income was only $33 million [1]. Meanwhile, Riot Platforms reported strong Q2 results, with revenue more than doubling to $153 million and a $0.98 earnings per share, far exceeding expectations of a $0.21 loss [1]. However, the stock still fell sharply, indicating that company-specific performance had little impact on investor sentiment [1].

The broader sell-off was driven by the latest US nonfarm payrolls data, which showed a disappointing 73,000 jobs added in July, well below the 100,000 expected by economists [1]. The weak data rekindled expectations for aggressive Federal Reserve rate cuts this fall, with the CME FedWatch Tool now pricing in an 80% chance of a September cut [1]. However, persistently high inflation, as indicated by a hotter-than-expected core PCE reading in June, complicates the case for immediate policy easing [1].

In addition to the economic concerns, renewed tariff threats from the Trump administration have heightened market anxiety. The White House announced revised tariff rates ranging from 10% to 41% ahead of the August 1 deadline, with some goods facing 40% tariffs to prevent rerouting around existing duties [1]. Jeffrey Schulze of ClearBridge Investments said the combination of weak labor data and rising tariffs could lead to a contracting labor market in the coming months [1].

The selloff extended beyond crypto and equities, with the dollar index rising above 100 and the yen hitting a four-month low, signaling global market unease over trade tensions and policy shifts [2]. The broader equity selloff, particularly in tech and growth sectors, reflected the same sentiment seen in crypto markets [2].

CryptoQuant noted that the recent drop in Bitcoin coincided with the third major profit-taking event in recent months and the emergence of new tariff-related tensions [3]. Despite the recent downturn, the crypto fear and greed index still shows “greed,” and most analysts remain optimistic about Bitcoin’s ability to recover [4]. However, one analyst warned of a potential 50% correction, highlighting the heightened volatility and uncertainty in the market [4].

As traders await key economic data releases and policy decisions, the market remains vulnerable to further corrections, particularly if trade tensions escalate or the Fed signals a more aggressive tightening path [1]. The interplay between global trade policies and monetary conditions continues to shape investor sentiment, with no clear resolution in sight [2].

Source:

[1] Bitcoin Drops Below $118.5K as Fed Decision and Tariff ...

https://www.mitrade.com/insights/news/live-news/article-3-999056-20250731

[2] Bitcoin, Ether Start August on a Shaky Note as Dollar Index ...

https://www.coindesk.com/markets/2025/08/01/bitcoin-ether-start-august-on-a-shaky-note-as-dollar-index-tops-100-yen-hits-4-month-low-ahead-of-nonfarm-payrolls

[3] Bitcoin Drops to $115K as Third Major Profit-Taking, New ...

https://cryptoadventure.com/asia-morning-briefing-bitcoin-drops-to-115k-as-third-major-profit-taking-new-tariff-tensions-add-pressure

[4] Bitcoin Bull Market Is Over? Analyst Calls 50% Crash To ...

https://www.mitrade.com/insights/news/live-news/article-3-1002849-20250801