Bitcoin News Today: Trump Tariffs Trigger Crypto and Equity Market Sell-Off

Late July and early August 2025 brought heightened volatility to the cryptocurrency and related equity markets as global economic uncertainty and policy developments intensified. Amid renewed trade tensions and weak labor market data, major crypto assets and equities fell sharply. Bitcoin dropped below $115,000, Ethereum and Solana each declined by 6% and 5%, respectively, and over $700 million in long positions were liquidated as traders scrambled to meet margin requirements [1]. The sell-off was driven by the Trump administration’s announcement of new "reciprocal" tariffs, which triggered a broad selloff in high-risk assets.

The downturn affected not only digital currencies but also crypto-linked equities. Coinbase’s shares fell 16% following a weak quarterly earnings report, with net profit standing at just $33 million when excluding investment gains. Other names such as Galaxy Digital and Bitmine Immersion also faced significant losses. MicroStrategy’s shares dropped 8.7%, compounding concerns about the sector’s sensitivity to macroeconomic and policy risks [2].

The market had previously seen a strong rally in July, with Bitcoin rising 8% and Ethereum surging over 49%, aided by over $5 billion in inflows into Ether ETFs [2]. However, this momentum stalled as investors shifted capital out of speculative assets. Global liquidity tightening and a risk-off sentiment further deepened the pullback, with Bitcoin falling nearly 2% in a single day amid fears of delayed Fed rate cuts [3].

Smaller altcoins also felt the pressure. XRP fell below $3, raising concerns about potential large-scale selloffs due to heavy selling by whales and insiders [4]. On August 1, 2025, the broader crypto market dropped 7% as renewed tariff fears deepened the bearish trend [5].

Analysts suggest the correction is a strategic cooldown rather than a crisis-driven event. Ben Kurland, CEO of crypto research firm DYOR, noted that markets are reacting to the absence of a crisis rather than the presence of one [2]. While institutional demand and technical indicators for Bitcoin and Ethereum remain strong, the immediate environment remains volatile and risk-averse.

As the market absorbs the impact of Trump’s tariff measures and reassesses the macroeconomic outlook, the evolving regulatory landscape—such as the GENIUS Act—signals a more structured approach to crypto governance [6]. However, for now, the sector remains under pressure, with no clear catalysts emerging to restore confidence.

Source:

[1] Title: Bitcoin, Ethereum crash as Crypto liquidation hits $708 million

URL: https://nairametrics.com/2025/08/02/bitcoin-ethereum-crash-as-crypto-liquidation-hits-708-million/

[2] Title: Crypto wobbles into August as Trump's new tariffs trigger ...

URL: https://www.cnbc.com/2025/08/01/crypto-market-today.html

[3] Title: Crypto Market Falters as Global Liquidity Tightens and ...

URL: https://www.riotimesonline.com/crypto-market-falters-as-global-liquidity-tightens-and-traders-retreat/

[4] Title: Crypto darling XRP under pressure, price dips below $3

URL: https://m.economictimes.com/news/international/us/crypto-darling-xrp-under-pressure-price-dips-below-3-whats-causing-the-drop-is-a-massive-selloff-coming/amp_articleshow/123042471.cms

[5] Title: Cryptocurrency Market Drops 7% as Tariff Fears Spur ...

URL: https://www.ainvest.com/news/ethereum-news-today-cryptocurrency-market-drops-7-tariff-fears-spur-global-sell-2508/

[6] Title: $4 Trillion Milestone: Trump Signs GENIUS Act, Cementing ...

URL: https://medium.com/@v.langston.journalist/4-trillion-milestone-trump-signs-genius-act-cementing-cryptos-role-in-u-s-finance-f90a1f688fa0