Oh, what a whimsical waltz the cryptocurrency market has been performing these past few days, with its illustrious leader, Bitcoin, leading the dance into a rather somber correction. Since the tender Thursday, the grandest of digital assets has pirouetted out of its comfortable consolidation, embarking on a journey that has seen it fall from the lofty heights of $119,000 to the more modest $112,700, a level not witnessed since the balmy evening of July 10.
This ballet of descent, you ask? Well, let us delve into the possible choreographers of this dramatic performance, ranging from the grand gestures of global economic uncertainty to the subtle steps of substantial ETH withdrawals.
Macro Reasons
The curtain rose on this particular act on Wednesday evening, mere hours after the United States Federal Reserve, in a move that would make the most stoic of economists raise an eyebrow, decided to heed neither the desperate cries nor the poetic pleas of one Donald J. Trump for a rate reduction. Rates remained unchanged, a decision as expected as the sunrise, yet somehow, BTC felt compelled to dip its toe into the waters of decline, losing a few thousand dollars in value.
By Thursday, BTC had attempted a valiant recovery, but the Fed’s steadfastness in maintaining its policy could not be ignored. Thus, we crown it the first possible conductor of BTC’s downward symphony.
Second in our lineup of maestros is none other than the 47th President of the United States, whose tariffs, like a tempest, began to take effect from August 1 (or was it Friday?). In a final flourish of bureaucratic elegance, Trump added a few new countries to his list of tariff recipients and raised the stakes against certain Canadian goods, just because he could.
President Trump says today’s jobs numbers were rigged to make him and the Republicans look bad.
— The Kobeissi Letter (@KobeissiLetter) August 1, 2025
Sell-Offs
Now, dear reader, let us turn our attention to the second act of this grand spectacle, where the stage is set for two principal performers in the sell-off saga. On Friday, amidst the cacophony of global events and the fog of uncertainty, reports began to circulate that retail investors, those fickle creatures, had commenced a mass exodus from their Bitcoin holdings.
These investors were soon joined by those who had sought refuge in the spot Bitcoin ETFs, a financial instrument designed to provide exposure to the digital asset without the hassle of direct ownership. According to the ever-reliable Farside, the ETFs broke a five-day winning streak on Thursday, with $114.8 million fleeing the scene. But the real drama unfolded on Friday, as investors withdrew a staggering $812.3 million, marking the worst single-day performance since February 25.
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2025-08-02 13:54