On August 1, 2025, Bitcoin (BTC) and Ethereum (ETH) experienced significant price declines as hopes for a Federal Reserve interest rate cut diminished. Over the past 24 hours, Bitcoin fell by 3%, dropping below $115,000, while the broader CoinDesk 20 index decreased by 6%. Ether also noted a 5.7% drop. Investor sentiment was affected by the onset of tariffs introduced by President Trump, which are set to impact imports from key trading partners. This economic backdrop led to a strengthening U.S. dollar, firmly pushing down crypto prices. Expectations around the Federal Reserve's policy were further complicated as inflation data showed an annual increase of 2.8% in June. Market participants are now pricing in only a 38% chance of a rate cut in September, down from 56%. Today's nonfarm payrolls data, expected to show the U.S. economy created 110,000 jobs last month, could be pivotal in shaping market trends. In the derivatives market, options traders are positioning themselves defensively against further downturns in Bitcoin while showing varied sentiment towards Ethereum. The crypto landscape remains volatile amid these macroeconomic pressures.

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