Bitcoin News Today: Trump Tariffs and Weak Jobs Data Trigger $1B Crypto Liquidations

In a dramatic 24-hour period, the crypto markets experienced nearly $1 billion in liquidations, driven by a combination of U.S. President Donald Trump’s announced tariff policies and disappointing economic data [1]. The liquidation wave affected major cryptocurrencies including Bitcoin and Ethereum, with Bitcoin falling below key support levels and Ethereum experiencing steep declines as leveraged positions were automatically closed across exchanges such as Binance, OKX, and Bybit [2].

The catalyst for the sell-off was Trump’s proposal of aggressive tariffs on Chinese imports, which he outlined as a key part of his re-election strategy. Tariffs, which could range from 15% to 40% on goods from over 70 countries, were perceived as a signal of potential economic slowdowns and inflationary pressures—key concerns for speculative markets like crypto [3]. The uncertainty triggered a broader market reaction, with global equities also sliding on August 1 as investors reacted to the policy shift.

Compounding the pressure was the U.S. Bureau of Labor Statistics' latest jobs report, which showed weaker-than-expected employment figures, raising concerns about a cooling labor market and prolonged inflationary pressures. This data reinforced fears that the Federal Reserve may adopt a tighter monetary policy, further weighing on high-risk assets [4].

The immediate impact on the U.S. crypto market was severe. U.S.-listed crypto stocks fell between 7% and 16% as investors moved capital to safer assets amid the heightened uncertainty [5]. Analysts warned that Trump’s tariff regime could disrupt global supply chains and dampen demand for imported goods, particularly in sectors tied to technology and digital assets [6].

While the implementation of most tariffs was delayed until August 7, providing a short-term reprieve, markets remained volatile as investors adjusted to the new reality of higher trade costs and reduced global liquidity. Ongoing trade negotiations between the U.S. and China, with a deadline to extend the current tariff pause set for August 12, added to the uncertainty [7].

Analysts suggest the coming period could see a consolidation phase in crypto markets, but warn that further downturns remain a risk if additional negative macroeconomic data emerges. In the short term, the focus will remain on whether the Federal Reserve adjusts its monetary policy in response to the economic slowdown [7].

Source:

[1] AInvest, Bitcoin News Today: Trump Tariffs Spur Crypto Sell-Off (https://www.ainvest.com/news/bitcoin-news-today-trump-tariffs-sell-bitcoin-dips-3-115-000-2508/)

[2] CoinMarketCap, Crypto Markets Hit Hard by Trump Tariffs & Jobs Data (https://coinmarketcap.com/community/articles/688db50c13c64465ecc43b04/)

[3] Yahoo, Surprise tariffs, jobs data send stocks reeling (https://finance.yahoo.com/news/surprise-tariffs-jobs-data-send-181112310.html)

[4] Mitrade, U.S. stocks dropped sharply Friday after weak July jobs ... (https://www.mitrade.com/insights/news/live-news/article-3-1006261-20250802)

[5] AInvest, Bitcoin News Today: Crypto Stocks Plunge 7%-16% Amid ... (https://www.ainvest.com/news/bitcoin-news-today-crypto-stocks-plunge-7-16-tariff-fears-weak-payrolls-data-2508/)

[6] techi.com, Trump Tariffs Trigger Stock Market Drop (https://www.techi.com/trump-tariffs-trigger-stock-market-drop/)

[7] Yahoo, Trump tariffs live updates: Trump outlines sweeping new ... (https://finance.yahoo.com/news/live/trump-tariffs-live-updates-trump-outlines-sweeping-new-tariffs-for-dozens-of-trade-partners-200619934.html)