Macro and Tariff Tensions Trigger Broad Market Pullback

Market Highlights

• Tariff Shock Sparks Sell-Off: Global risk appetite soured after President Trump unveiled sweeping new tariffs, triggering a wave of liquidations across crypto markets.
• ETH Ends Its Weekly Winning Streak: ETH closed in the red this week, snapping a five-week rally that had seen it surge more than 50% through July.
• ETF Flows Diverge: ETH ETFs attracted US$154 million in net inflows, while Bitcoin ETFs saw US$643 million in outflows.
• Memecoins Lead the Losses: High-flying memecoins like USELESS, FARTCOIN, and MOG plunged over 30% as traders rotated out of speculative assets.

Market Overview

Crypto markets saw their first major pullback in over a month last week, as geopolitical tensions and renewed macro uncertainty triggered a wave of risk-off sentiment. The sharpest moves came on Friday, following a series of developments that rattled investor confidence.

President Trump unveiled sweeping new tariffs on dozens of countries, ranging from 10% to 41%, reigniting inflation concerns and casting doubt on the Federal Reserve’s rate-cut outlook. The announcement followed a weaker-than-expected U.S. jobs report and controversial claims from Trump accusing the Bureau of Labor Statistics of political bias.

Later that day, markets were further shaken when Trump revealed he had ordered the repositioning of two U.S. nuclear submarines in response to Russian rhetoric—an unverified move that added a layer of geopolitical risk.

The fallout hit crypto hard. Bitcoin (BTC) and Ethereum (ETH) saw a combined US$490 million in long liquidations within 24 hours, according to CoinGlass, as leveraged positions were rapidly unwound.

The pullback follows a record-breaking July: Bitcoin gained 8% and reached new all-time highs, Ethereum surged over 50%, and spot crypto ETFs attracted a record US$12.8 billion in net inflows.

Bitcoin (BTC)

Bitcoin (BTC) declined –4.26% this week, closing near US$114,000 as profit-taking and tariff-related macro pressures weighed on sentiment. Despite the weekly drop, BTC achieved its highest monthly close ever, underscoring the strength of its broader uptrend.

ETF activity reflected growing caution. According to SoSoValue, spot Bitcoin ETFs recorded US$643 million in net outflows over the week, with Friday alone accounting for US$812 million—one of the largest single-day outflows to date. The scale of redemptions points to a temporary shift in institutional sentiment as traders reassess positioning into the new month.

However, corporate interest in Bitcoin remains robust. Japanese investment firm Metaplanet filed to raise US$3.7 billion through preferred shares to support its long-term goal of acquiring 210,000 BTC by 2027. Meanwhile, Strategy (MSTR), the largest corporate holder of Bitcoin, disclosed plans to raise up to US$4.2 billion via a new preferred stock issuance. This follows its recent US$2.5 billion “stretch” capital raise and reinforces the firm’s commitment to long-term Bitcoin accumulation.

Ethereum (ETH)

Ethereum (ETH) ended its five-week winning streak, falling –9.67% to close the week near US$3,500. After dipping to a low of US$3,360 on Saturday, buyers stepped in to defend the key US$3,500 support level. The pullback follows a +50% surge in July—ETH’s strongest monthly performance since 2022—and is unsurprising at month-end, as investors locked in profits amid renewed macro uncertainty and tariff-related market jitters.

Despite the price decline, institutional demand remained resilient. Spot ETH ETFs recorded US$154 million in net inflows for the week, according to SoSoValue, with Friday the only day of outflows. The consistent interest reflects ongoing conviction in Ethereum’s long-term potential.

On the corporate front, Ether Machine added 15,000 ETH to its treasury last week—coinciding with Ethereum’s 10-year anniversary. This purchase lifted its total holdings to US$1.28 billion, making it the third-largest known ETH holder globally. SharpLink Gaming also added to its position, buying an additional US$100 million worth of ETH during the dip.

Altcoins

Altcoins saw broad-based declines this week as risk sentiment deteriorated across the board. Meme coins and retail favourites were hit hardest, while only a few names managed to hold steady.

Among the market’s top 10 large caps, Tron (TRX) was the lone standout, rising +2.80%. Notably, this marks its sixth straight week of gains, with the network continuing to build quiet but consistent momentum.

Dogecoin (DOGE) was the weakest performer, falling –17.43% amid a broader memecoin correction and fading speculative interest.

Binance Token (BNB) dropped –10.97%, reversing last week’s rally as profit-taking took hold. Solana (SOL) declined –14.14%, while Cardano (ADA) and XRP (XRP) fell –12.64% and –8.96% respectively. The pullback reflects a broader shift in risk appetite, as traders locked in profits following a strong month of performance.

Biggest Gainers:

• Zebec Network (ZBCN) +27.73%: ZBCN extended its rally this week, driven by growing investor interest in real-world asset platforms. Ongoing treasury-funded buybacks continued to support upward price momentum.
• Qubic (QUBIC) +20.02%: QUBIC recorded a fourth straight weekly gain, fuelled by excitement over its upcoming QSwap DEX and a deflationary token burn model.
• Conflux (CFX) +16.14%: CFX gained momentum ahead of the Conflux 3.0 upgrade in early August, which promises 15,000 TPS and support for AI agents.

Biggest Losers:

Meme coins bore the brunt of this week’s market pullback, as fading risk appetite prompted a rotation out of high-volatility assets. Several of the market’s recent top performers were among the hardest hit:

• Useless Coin (USELESS) -32.89%
• Fartcoin (FARTCOIN) -30.95%
• Mog Coin (MOG) -28.74%

ICYMI - The Week in Crypto News

Here are a few key stories you may have missed:

• White House Working Group Releases Crypto Report: The U.S. President’s Working Group on Digital Asset Markets has released what is being described as the most comprehensive U.S. crypto policy document to date. It follows a six-month review triggered by an executive order signed by President Trump in January.
• Trump Media Confirms $2B Bitcoin Treasury: In its Q2 2025 earnings, Trump Media (DJT) revealed it holds $2 billion in Bitcoin and related securities, including a $300 million options-based BTC strategy.
• Ether Machine Becomes Third Largest Ethereum Holder: Institutional crypto fund Ether Machine acquired 15,000 ETH last week, bringing its total holdings to $1.28 billion. This makes it the third largest Ethereum treasury globally, behind Bitmine Immersion Tech and SharpLink Gaming.
• Ethena Foundation Completes 83M ENA Buyback: Ethena Labs confirmed it has completed the purchase of 83 million ENA tokens as part of its ongoing buyback initiative, executed through a foundation subsidiary.
• Maple Governance Approves SYRUP Buyback Boost: Governance proposal MIP-018 passed, increasing monthly SYRUP buybacks to 25% of protocol revenue, enhancing value capture for Maple stakers.
• MetaMask Launches Stablecoin Yield in Partnership with Aave: MetaMask has introduced a new feature allowing users to earn yield on stablecoin deposits via the Aave protocol, expanding access to decentralised lending.
• Pendle Expands to HyperEVM: Pendle has launched on HyperEVM, bringing its fixed-yield DeFi infrastructure to the growing EVM-compatible chain.
• Aave Reduces Token Emissions by 25%: The Aave DAO approved a proposal to reduce AAVE emissions to stkAAVE and stkABPT holders by 25%, aiming to cut inflation and strengthen protocol sustainability.

Looking Forward - The Week Ahead

Key upcoming events to watch:

• ChatGPT-5 Launch (Early August): OpenAI’s latest large language model is expected to launch this week. Its release may drive renewed interest in AI-related crypto tokens.
• Ethena Token Unlock (5 August): Approximately $99 million worth of ENA tokens (2.7% of circulating supply) will be unlocked, potentially leading to increased market volatility.
• U.S. Tariff Increase (7 August): The Trump administration's latest round of global tariffs is set to take effect, which may impact broader market sentiment and risk assets, including crypto.

Thanks for reading this week’s Market Pulse. We’ll be back next week with more insights from the crypto markets!