Ether, Bitcoin Fall as Dollar Index Tops 100 Amid Trump Tariff Tensions

The 20-day inflow streak for U.S. spot Ethereum ETFs ended on August 1, 2025, with a net outflow of $152 million after a strong launch period that saw $5.5 billion in inflows; analysts attribute this reversal to profit-taking and a sell-the-news event following positive regulatory developments. Concurrently, the global crypto market opened August with a broad sell-off triggered by a stronger U.S. dollar and geopolitical tensions stemming from President Donald Trump's announcement of new sweeping tariffs. Bitcoin briefly dropped to around $114,200 before recovering above $115,000, while Ethereum fell from $3,860 to $3,600, reflecting risk-off sentiment amid rising financial tightening concerns linked to a surge in the U.S. Dollar Index above 100. The sell-off led to significant liquidations, with over $758 million wiped out and most positions being long bets, highlighting traders' unexpected bearish turn despite recent bullish momentum. The tariffs, designed to impose 10% to 15% duties depending on trade balances, are expected to exacerbate inflationary pressures in the U.S., contributing to the dollar's strength and prompting investors to reduce exposure to riskier assets like cryptocurrencies. Experts note that the inflation impact of these tariffs is now materializing, influencing the Federal Reserve's inflation measures and increasing market volatility across major cryptocurrencies.