From rates to ETFs: 5 catalysts behind the large drop of Bitcoin

It has been a few tough days for the cryptocurrency market, including the leader. Since Thursday, the largest digital active in market capitalization has been in a correction mode after a few weeks of consolidation.

In particular, Bitcoin fell under the southern border of his trade range and fell from $ 119,000 to the lowest levels since 10 July at $ 112,700 on Friday evening.

Here are some of the possible reasons for this rather painful racement, which vary from global economic uncertainty to substantial ETH recovery.

Macro reasons

The general BTC correction started this week on Wednesday evening, hours after the American Federal Reserve decided to ignore Trump’s supplications for a rate reduction and left them unchanged. Although this decision was fully expected, even after the positive American GDP report for Q2, which went out the same day, the price of BTC fell by a few large ones.

The active succeeded in recovering part of the losses by Thursday, but the refusal of the FED to run from its policy must be mentioned as the first possible reason behind the general decrease of BTC.

The rates of the Potus are second in line, because many of them came into force from 1 August (Friday). In addition, Trump made some last-minute changes, including adding new countries to the list and increasing rates against certain Canadian goods.

The 47th American president went through the news again on Friday evening order Two nuclear submarines that must be placed in “the right regions” around strategic Russian locations. In response to a speech by Dmitry Medvedev, a former Russian president, about the growing risks of a war between nuclear arming opponents.

Although this concludes our list of three possible macro reasons behind the correction of BTC, there are some bonuses that may have had a smaller impact here. First, India said Despite the threats of Trump Olie from Russia, it will continue to buy. Secondly, the Potus claimed that the unfavorable job figures announced on Friday were “rigged” by a Biden appointed.

Breaking: President Trump says that today’s duties have been rigged to make him and the Republicans look bad. pic.twitter.com/lmlzvniueq

– De Kobeissi -Letter (@kobeissiletter) August 1, 2025

Sale

The second part of our list contains two important sales reasons, which may have caused the aforementioned global events and uncertainty. Initially, reports emerged on Friday during the first phase of this correction that retail investors started throwing away large quantities of their Bitcoin companies.

Their behavior was largely simulated by investors who used the Bitcoin ETFs location to get some BTC exposure. The ETFs broke a five -day positive series on Thursday when $ 114.8 million left the money, according to to data from Verre. The landscape deteriorated on Friday when investors withdrew $ 812.3 million into what became the worst single-day performance since 25 February.