- Bitcoin fell nearly 10%, erasing about $300 billion from the global cryptocurrency market value.
- The drop follows recent trade tariffs, weaker than expected U.S. job numbers, and wide stock market declines.
- Analysts point to increased market risk and seasonal patterns, noting August is historically a difficult month for Bitcoin.
- Experts differ in their views: some view Bitcoin as a safe haven, while others caution it moves with high-risk assets.
- Despite short-term losses, major crypto events and endorsements continue to bolster long-term optimism among investors.
Bitcoin, one of the top-performing assets this year, lost almost 10% of its value this week. The decline started after a sharp sell-off that impacted the wider crypto market, removing roughly $300 billion from the total market value.
The recent downturn follows the introduction of new U.S. trade tariffs and reports that the U.S. economy added fewer jobs than expected in July, with previous months’ job numbers also revised lower. Stock markets declined in tandem, adding to pressure on digital assets.
Robert Kiyosaki, author of “Rich Dad, Poor Dad,” posted concerns about a possible economic crash similar to the Great Depression, referencing major investors like Warren Buffet and Jim Rogers who have recently sold off investments. “I sit tight with Gold, silver, and bitcoin,” Kiyosaki said in his statement on X.
On the other hand, economist Peter Schiff, a well-known critic of Bitcoin, argued that the cryptocurrency carries major risks. He said in a broadcast on X Spaces that, “Days like today make it clear that bitcoin is not digital gold,” and explained Bitcoin’s value dropped alongside risky assets, not with traditional safe havens such as gold or the Japanese yen. Schiff added, “We got bad economic news that sent gold and the Japanese yen up 2.2% and the euro up 1.5%. The Nasdaq went the other way, falling 2.2%. Bitcoin tanked 3%, tracking high-risk assets lower, not safe havens higher.”
Since late 2022, Bitcoin has climbed about 650%, bouncing from $16,000 to over $123,000 per coin in July before this latest drop. Analyst Alex Kuptsikevich from FxPro reported via email that Bitcoin had lost almost half its gains from the recent July peak, with heavy selling appearing late in the month.
Data from the past 14 years shows August is typically a weak month for Bitcoin. Kuptsikevich noted that the cryptocurrency has posted gains in August only five times, while falling in nine of those years.
Despite ongoing volatility, some market participants remain hopeful. Gadi Chait of Xapo Bank said, “Bitcoin’s consolidation after a period of successive all-time highs comes as no surprise. Yet again, inflationary fears have risen as tariffs and geopolitical uncertainty linger, spooking both crypto and traditional markets,” in emailed remarks. He said recent developments, including a White House crypto report, suggest growing mainstream acceptance. Chait also cited Bitcoin exchange-traded fund (ETF) outflows of about $115 million as evidence of institutional investors reducing risk ahead of the August 1 tariff deadline.
Other details suggest that, despite rapid price changes, many bitcoin holders see the asset as maturing and resilient to outside shocks, supporting continued long-term interest.
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