For the cryptocurrency market, including its leader, it has had several tough days. Since Thursday, the largest digital assets by market capitalization have now entered revision mode after weeks of consolidation.
In particular, Bitcoin fell below the southern boundary of trading range and fell from $119,000 to the lowest level from July 10th to Friday evening at $112,700.
Below are some of the possible reasons behind this rather painful retreat. This ranges from global economic uncertainty to substantial ETH withdrawal.
Macro Reasons
The overall BTC amendments this week began Wednesday evening when the US Federal Reserve decided not to change them, ignoring Trump’s pleas. The decision was fully anticipated, but even after the positive US GDP report for Q2 that came out on the same day, BTC prices fell to some ground.
The assets were able to recover some of the losses by Thursday, but the rejection of pivots from the Fed’s policy must be named as the first possible reason behind the overall decline in BTC.
Potus tariffs are second in line, most of which came into effect on Friday, August 1st. Additionally, Trump made some last minute changes. This includes adding new countries to the list and increasing duties on certain Canadian goods.
The 47th US President made the news again on Friday evening, ordered the two nuclear submarines to be placed in “appropriate areas” centered around Russian strategic locations. This came as a response to a speech by former Russian President Dmitry Medvedev, about the increased risk of war among nuclear-armed enemies.
This concludes the list of three macro reasons behind the fix for BTC, but here are some bonuses that may have had a smaller impact. First, India said it would continue to buy oil from Russia despite Trump’s threat. Second, Potus claimed that the number of unfavourable jobs announced Friday was “equipped” by Biden’s appointees.
Breaking: President Trump says the number of jobs today was equipped to make him and Republicans look bad. pic.twitter.com/lmlzvniueq
– August 1, 2025, Kobeissi letter (@kobeissiletter)
sale
The second part of the list includes two major sale-off reasons that the aforementioned global events and uncertainties caused. First, in the early stages of this revision, reports emerged on Friday that retail investors began disposing large quantities of Bitcoin holdings.
Their actions were largely mimicked by investors using spot bitcoin ETFs to obtain BTC exposure. According to data from Farside, the ETF defeated a five-day positive winning streak on Thursday. The landscape worsened on Friday as investors withdraw $812.3 million in the worst day performance since February 25th.
