Crypto Market Tanks 3–9% as Trump’s Tariffs and Weak Jobs Data Trigger Sell-Off

The global crypto market suffered a sharp contraction on August 1, 2025, shedding roughly $150 billion in value and falling 7%, as elevated U.S. tariffs and disappointing labor figures sent risk sentiment into retreat. Bitcoin slid below $115,200, extending its losing streak to five sessions. Ethereum, Solana, Dogecoin, and XRP also posted steep losses, ranging from 3% to 9%.

The drop came after the White House announced new global base tariffs of 10%, including a 35% tariff on Canadian imports. The announcement rattled markets, triggering profit-taking and a wave of risk-off positioning. At the same time, U.S. nonfarm payrolls showed the slowest job growth since early 2023, adding to concerns about the economic outlook.

Liquidations surged, with over $800 million in leveraged positions—primarily long bets—wiped out in the past 24 hours. The cascade accelerated losses across major assets.

Bitcoin declined around 3.2% to the $114,800 range, continuing a pullback from its mid-July high above $122,000. Ethereum fell nearly 4% toward $3,700 support, while Solana tumbled about 9% to $172. XRP dropped roughly 6%, underperforming much of the market and giving back a large portion of its recent gains.

The downturn follows a strong July, when spot ETF inflows helped propel Bitcoin and Ethereum higher. Those inflows have since slowed, leaving the market more vulnerable to macro-driven shocks. Without renewed institutional demand, recovery may be choppy.

Traders are watching Bitcoin’s $115,000 to $120,000 range as a pivotal zone. A break lower could test $110,000, while a move back above $120,000 could help stabilize sentiment. Ethereum and XRP face more immediate technical hurdles and will likely need broader market strength to regain lost ground.

As August begins, market focus shifts to upcoming inflation data and potential signals from the Federal Reserve. Until then, volatility is expected to remain high, with macroeconomic headlines holding the reins over crypto price action.