Bitcoin Drops 3% as Crypto Market Faces Decline
The crypto market is experiencing a downturn, with Bitcoin (BTC) dropping 3% in the last 24 hours, falling below $115,000. Other major cryptocurrencies also declined: the CoinDesk 20 index fell 6%, Ethereum (ETH) decreased by 5.7%, and XRP lost over 7%. This decline coincides with new tariffs introduced by President Trump, affecting imports from various countries, which negatively impacted Asian equity markets and strengthened the U.S. dollar.
Key economic indicators include:
- Core PCE inflation measure rose to 2.8% year-over-year in June
- Traders reduced the perceived likelihood of interest rate cuts in September from 56% to 38%
- Nonfarm payrolls data is expected to show 110,000 jobs added in July
Options traders are adjusting positions, indicating bearish sentiment for BTC while ETH options show mixed positioning. A stronger dollar and prolonged higher interest rates may lead investors to yield-bearing stablecoins or ETH-based vaults.
Upcoming Events
- Aug. 1: Helium Network halving event reduces token issuance to 7.5 million HNT
- Aug. 1: Hong Kong's Stablecoins Ordinance takes effect, regulating stablecoin activities
- Aug. 4: Solana Mobile begins global shipping of Web3 mobile device
- Aug. 15: Next FTX distribution for eligible claims holders
Market Movements
- BTC down 2.92% at $114,962.47
- ETH down 5.94% at $3,619.49
- CoinDesk 20 down 6.05% at 3,764.26
- DXY up 0.25% at 100.22
- Gold futures unchanged at $3,345.70
Bitcoin Stats
- BTC dominance at 61.98%
- Open interest in CME bitcoin futures at 138,495 BTC
Technical Analysis
- Bearish divergence noted in the ether-bitcoin ratio suggests potential underperformance of ETH against BTC
ETF Flows
- Spot BTC ETFs saw daily net outflows of $114.8 million
- Cumulative net flows for spot ETH ETFs reached $9.66 billion
Derivatives Positioning
- Open contracts in CME bitcoin futures dropped to 27,699
- Ether futures open interest decreased to 32,903 contracts
Investors should monitor economic data releases and tariff impacts on market conditions as they could influence future trading strategies.