August 1, 2025 Cryptocurrency markets saw a sharp decline on Tuesday morning as Bitcoin (BTC) slipped below the $100,000 mark, settling around $97,800 following two strong economic reports from the United States. JOLTS job openings rose to 8.1 million, far exceeding analysts’ expectations, while the ISM services PMI came in at 54.1, also higher than expected. These reports contributed to a rise in US government bond yields and caused a decline in US stocks, with the Nasdaq falling more than 1%.
Major altcoins such as Ethereum (ETH) and Solana (SOL) fell between 6% and 7%, while nearly $300 million in long positions were liquidated in derivatives markets. Positive economic news led to a decline in expectations for a rate cut by the US Federal Reserve in 2025, with participants now expecting only one 25 basis point cut during the year.
Coinbase, a cryptocurrency exchange, recently won a small legal victory against the U.S. Securities and Exchange Commission (SEC) when a federal judge allowed an interim appeal related to the SEC’s charges against the company. Judge Katherine Failla’s order, issued on January 7, 2024, halts all proceedings until the Court of Appeals for the Second Circuit considers the appeal, which focuses on whether certain cryptocurrency transactions are securities under the Howey standard.
The case is complicated by conflicting rulings in other SEC cases involving Terraform Labs and Ripple Labs, which have different interpretations of the definition of a security. Coinbase, which has been accused of operating as an unregistered securities exchange since 2019, is seeking regulatory clarity and has also been active in political efforts to support pro-crypto candidates. There are also calls for the SEC to reform its approach to digital assets in light of the upcoming departure of key officials.
