Crypto Markets Pull Back amid Macro Worries – Crypto News – Crypto News
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Crypto Markets Pull Back amid Macro Worries Crypto Markets Pull Back amid Macro Worries

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Crypto Markets Pull Back amid Macro Worries – Crypto News

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Large-cap crypto assets struggled to hold gains after a strong July, weighed down by weak U.S. jobs data and tariff uncertainties.

Following a strong July, crypto markets dipped on Friday, Aug. 1, as U.S. tariff developments and disappointing jobs data dampened investor sentiment.

BTC 1-month price chart. Source: CoinGecko

Bitcoin (BTC) slipped below $115,000 today, after hitting a mid-July peak and recording a new all-time high of about $122,800. The top cryptocurrency is consolidating between $114,000 and $116,000 today as momentum from its rally this month fades and ETF inflows cool amid macro uncertainty.

Still, Bitcoin closed July with an 8.1% monthly gain, marking its highest monthly close ever, above $116,300, according to CoinGecko.

Analysts Look Back at July

On-chain analyst Willy Woo said in an X post on Thursday, July 31, that “July marked a transition from trend to consolidation” for Bitcoin. The analyst noted that speculation and profit-taking were weighing on momentum and could force Bitcoin into a reset or sideways grind before another breakout.

Glassnode analysts noted in an X post the same day that BTC still remains above all short‑term holder cost‑basis zones — ranging from $110,000 to $117,000 — suggesting underlying support even if a retracement unfolds.

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And yet, analysts at Fidelity Digital Assets suggested that Bitcoin’s acceleration phase is still intact, pointing to five new all-time high closes in July and noting that BTC spent more than half of Q2 riding high on profits and volatility.

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BTC price movements by month. Source: Coinglass

Meanwhile, Ethereum (ETH) rallied nearly 50% in July, as institutional interest in Ethereum gathered steam, reflected by the accelerating ETH treasury trend and record inflows into spot Ethereum exchange-traded funds (ETFs). ETH is currently trading near $3,600, still failing to break through the $4,000 level, which it last touched in December 2024.

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ETH price movement by month. Source. Coinglass

The rest of the large-cap altcoin market is seeing similar 24-hour losses to ETH of between 5-6%. XRP was an outlier, losing just 3% to barely hold onto the $3 level at $3.01. XRP grew nearly 34% this past month.

Solana (SOL) dropped 6.5% to roughly $166 today, also down the same amount over the past week. SOL is still in the green on the month, up about 10%.

Overall, total cryptocurrency market capitalization shed nearly 8% over the past 24 hours to below $3.8 trillion, with daily trading volume across exchanges reaching $190 billion, per CoinGecko data. Earlier in July, the total market cap broke over $4 trillion for the first time.

Over the past 24 hours, more than $800 million in leveraged crypto positions were liquidated, according to CoinGlass. Ethereum led the way with over $267 million in liquidations, while Bitcoin accounted for about $206 million of the total.

ETH ETFs Break Monthly Record

U.S. spot crypto ETFs told a split story on July 31 as Ethereum funds pulled in about $17 million in net inflows, while Bitcoin ETFs netted nearly $115 million in outflows, per data from SoSoValue.

On the monthly timeframe, spot ETH ETFs shattered previous records, pulling in a staggering $5.43 billion in July. BTC ETF net inflows totalled $6.02 billion in July, one of the best months for the products since launch, but below their previous monthly high near $6.5 billion in November 2024.

US Jobs Report and Tariffs

On the macro side, markets had to digest a weak July jobs report from the United Stated that showed only 73,000 new payrolls, along with about 258,000 downward revisions to earlier months and an uptick in unemployment to 4.2% from 4.1% in June. The soft numbers raised fresh doubts about the strength of the labor market, potentially stoking recession worries, Reuters reported.

Traders responded to the jobs report by sharply increasing bets on a September rate cut: CME FedWatch data at press time on Aug. 1 showed a nearly 83% probability that the U.S. Federal Reserve will lower its target rate to 4.00-4.25%, up from a 37.7% probability a day earlier.

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Rate cut probability. Source: CME FedWatch

Adding to the pressure, U.S. President Donald Trump signed off on new sweeping tariffs, which are set to kick in on Aug. 7. The tariffs impose duties between 15% and 41% percent on goods imported to the U.S. from more than 67 countries, Politico reported. Trump also increased tariffs on Canadian goods, a measure that took effect today. The mix of disappointing jobs data and tariff uncertainty kept investors cautious across equities, bonds, and crypto.

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