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.