Bitcoin News Today: Cryptocurrencies Tumble 4% as Trade War Fears and Jobs Data Spur Sell-Off

The cryptocurrency market opened August amid heightened volatility, with broad-based selloffs driven by intensifying trade war tensions and global financial market instability. The impact of U.S. President Trump’s proposed trade tariffs was evident across both traditional and digital asset classes, triggering sharp declines in key metrics. As of August 1, 2025, the total crypto market capitalization had dropped nearly 4 percent in the previous 24 hours, settling at approximately $3.73 trillion, with over 30 percent of the top 100 cryptocurrencies posting losses of more than 10 percent in a single night [1].

Bitcoin, the leading digital asset, fell 2.9 percent to $115,053.10, continuing its correction from a July 14 peak of $123,091.61. The 7-day decline of 1.5 percent highlighted its susceptibility to macroeconomic pressures, despite a 6.8 percent gain over the past 30 days. Its market dominance edged up to 61.2 percent from 60.8 percent, as investors shifted capital toward Bitcoin amid broader uncertainty [1]. However, its position in the global asset rankings has slipped to seventh, reflecting a broader reallocation of capital [1].

Ethereum, the second-largest cryptocurrency, dropped 5.6 percent to $3,622.70, with year-to-date gains narrowing to 8.75 percent. Despite $17 million in inflows for Ethereum-based spot ETFs, its global asset ranking remains at 25th [1]. Other major tokens also experienced declines, with XRP falling 6.6 percent to $2.94, BNB down 4.3 percent to $767.02, and Solana declining 7.1 percent to $167.94. Dogecoin, historically bearish in August, lost 7.7 percent to $0.2053, trading 72 percent below its record high [1]. Among the top 100, LEO posted the only modest gain, up 0.20 percent, while SPX6900 led the selloff with a 16.6 percent drop [1].

U.S. Bitcoin-based spot ETFs also recorded outflows of $115 million on Thursday, contrasting with $47 million in inflows the previous day. The iShares Bitcoin Trust (IBIT) attracted $19 million in inflows, while the Ark 21Shares Bitcoin ETF (ARKB) saw outflows of $90 million [1].

Analysts attribute the selloff to three primary factors: a disappointing U.S. jobs report, rising geopolitical tensions, and growing recessionary fears. The July non-farm payroll report, which added only 110,000 jobs compared to 147,000 in June, reinforced expectations of a weakening labor market. This, combined with a hawkish Federal Reserve stance and rising bond yields, contributed to investor caution [1].

Despite the near-term sell-off, some analysts remain cautiously optimistic. One analysis notes a potential double bottom forming on XRP’s 4-hour chart, with a break above $3.30 potentially signaling a move toward $3.60 [4]. Additionally, institutional accumulation and ETF flows suggest Bitcoin could stabilize and test the $117K–$120K range in the coming weeks [3].

The CMC Crypto Fear and Greed Index currently stands at 57, indicating a neutral market sentiment after a previous “greed” reading. This reflects the emotional turbulence in the market amid the selloff [1].

Investors are urged to remain cautious as market dynamics shift rapidly. With major events expected in August, the trajectory of the cryptocurrency market remains uncertain, and opportunities may emerge alongside heightened risks [1].