Cryptocurrency markets declined on Friday, led by a 2.5% drop in Bitcoin, which fell below $115,500. Ethereum dropped by 5%, while XRP lost 6% and fell back under $3. Solana and Dogecoin recorded larger losses of 7% and 8%, respectively.
Among smaller tokens, several experienced double-digit declines. PUMP, which had surged the previous day due to a buyback, lost over 20%. Pi Network fell another 3%, setting a new all-time low just above $0.40.
Tariff Announcement Sparks Market Reaction
The sell-off followed a late Thursday announcement from the White House, where President Donald Trump signed a series of executive orders raising tariffs on imports from multiple countries. Tariffs on Canadian goods were increased from 25% to 35%, effective immediately. For most other countries – including India, Switzerland, South Africa, and members of the European Union – new tariffs ranging from 10% to 40% will take effect in seven days.
Markets broadly responded with risk-off sentiment. U.S. stock futures slipped in early trading, with the Nasdaq 100, S&P 500, and Dow Jones all trading lower. The rising concern over trade disruptions and inflation appeared to influence crypto assets as well, which often move in tandem with other high-risk markets.
Profit-Taking Adds to Downward Pressure
Alongside macroeconomic concerns, data shows that a large wave of profit-taking has contributed to recent price declines. On-chain analytics from CryptoQuant indicate that between $6 billion and $8 billion in realized profits were recorded in the final days of July.
These movements suggest that some investors saw recent all-time highs as an opportunity to exit positions. The combined effect of profit realization and new tariff policies resulted in a broad pullback across crypto markets.
July Closes at Record High Despite Drop
Despite the decline, Bitcoin ended July near $115,800 – the highest monthly opening price in its history. While current prices are around 6.5% below the all-time high set on July 14, they remain well above levels seen in previous months. The chart pattern resembles prior consolidation phases that followed major price rallies.
Previous Tariff Announcements Show Similar Impact
This is not the first time tariffs have caused crypto market volatility. In April 2025, an earlier round of tariff announcements led to a decline in digital assets. That downturn was followed by a full recovery and a rally to new all-time highs within weeks.
Remember that there are no major disruptions to crypto networks, no regulatory changes, and no structural failures in the ecosystem. The recent declines are driven mostly by external factors – global market reactions to new trade policies. Crypto fundamentals and their long-term potential remain intact.
