Early August on the crypto market: Bitcoin retreats, US regulates the market

Declines in the cryptocurrency market have pushed Bitcoin further away from its record high. Turmoil surrounding US tariff policy has reduced risk appetite, but regardless of the performance of the US price charts, a radical shift in the approach of regulatory agencies to cryptocurrencies is underway.

Last Thursday and Friday, US Bitcoin ETFs saw nearly $1 billion in outflows. This made last week the first in 15 weeks in which cryptocurrency ETFs withdrew more funds than they put in. The total outflow was $200 million, with Bitcoin ETFs alone receiving $400 million.

On Saturday, August 2, bitcoin fell to $112,296, its lowest level in a month, moving 8.5% off its record high of $122,838 reached on July 14. Ethereum, which had surpassed $3,900 a week ago, retreated to around $3,400 on Saturday.

📉 Last week, digital asset investment products saw outflows of US$223M for the first time in 15 weeks. @Bitcoin led the outflows with US$404M while @ethereum posted its 15th straight week of inflows with US$133M. XRP ( @Ripple ), @solana , and @SeiNetwork also attracted notable… pic.twitter.com/Tpo67w0w3w

— CoinShares (@CoinSharesCo) August 4, 2025

The appetite for risky assets has been dampened by the introduction of new US tariffs . An order signed by President Trump on Thursday raised tariffs on imported goods from over 70 countries, including Canada, the US's main trading partner.

Wall Street sentiment was also significantly dampened by Friday's US labor market data. The number of full-time jobs increased in July less than analysts had predicted, and unemployment rose to 4.2%. However, the May and June revisions proved particularly severe, cutting a combined total of over a quarter of a million full-time jobs. Trump responded by firing the head of the Bureau of Labor Statistics .

The US stock market began to regain momentum on Monday, as weak economic data fueled stronger confidence in the Fed's September interest rate cut. A slight rebound also emerged in the cryptocurrency market, but most were far from recouping their losses from the end of last week.

On Tuesday, August 5, at 1:00 p.m., the quotations of the most important cryptocurrencies were as follows:

• Bitcoin - $114,788
• ethereum - $3,677.75
• xrp - $3.07
• bnb - $764.07
• salted - $170.70

Macroeconomic conditions have led to a minor correction in the cryptocurrency market. In addition, major legislative changes are underway in the US to support this asset class. Last Thursday, the US Securities and Exchange Commission (SEC) unveiled "Project Crypto," an initiative aimed at modernizing rules and regulations to accommodate cryptocurrencies. The project includes:

• simplification of licensing procedures for providers - brokers will be able to offer multiple asset classes under a single license, including cryptocurrencies and shares,
• ensuring a transparent market structure - most cryptocurrencies will be defined as commodities, and securities rules will only cover traditional financial instruments,
• Grace periods for innovation – early-stage crypto projects, ICOs and decentralized software could benefit from temporary exemptions from certain requirements to avoid premature lawsuits,
• self-custody protection - guaranteeing individuals the right to own and store cryptocurrencies without the involvement of intermediaries.

The most important change for the cryptocurrency market introduced by the new SEC chairman is the departure from the principle of "regulation through enforcement" used by his predecessor, Garry Gensler.

Since Atkins took office, the SEC has resolved several proceedings brought against cryptocurrency companies, including the settlement with Ripple. Furthermore, numerous applications for new cryptocurrency ETFs have been approved. Staking rules have also been clarified, stating that income generated in this way does not constitute securities trading.

Less than a week after the SEC presented its cryptocurrency initiative, the Commodity Futures Trading Commission (CFTC) presented its ideas for this market. On August 4th, the regulator announced the "Crypto Sprint" project, which aims to implement the recommendations contained in the recent report of President Trump's working group on digital assets. One of the specifics would be enabling spot trading of cryptocurrencies on futures exchanges.

In addition to clear changes in the approach to the cryptocurrency market by the most important regulatory agencies in the United States, legislative initiatives are taking place in Congress on an independent track.

Mid-last month , the U.S. House of Representatives approved the GENIUS Act , which establishes rules for the stablecoin market. In addition, a document establishing an initial regulatory framework for the entire cryptocurrency sector and an "anti-CBDC" bill banning the issuance of central bank digital currency were passed.

MM

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