Crypto Is Down Today: What’s Causing the Selloff?

Crypto prices tumble across the board today, August 6, 2025. According to CoinGecko, the total crypto market cap has fallen by 0.97% in the last 24 hours and currently stands at around $3.78 trillion, while 24-hour trading volume is down 1.2%, at $139 billion. The Crypto Fear & Greed Index sits at 52 (neutral). 

So, why is crypto dropping today? Here are the three main triggers behind the selloff:

• Macro uncertainty driven by tariff concerns
• Weak economic data weighing on investor sentiment
• Institutional outflows from major assets

Bitcoin is trading at $113,000, down 0.2% over the past 24 hours. Ether, XRP, and SOL are also in the red – down 1.4%, 2.8%, and 2.0%, respectively – currently priced at around $3,590, $2.95, and $164.

Tariff Plans Drive Market Inflation Concerns

On August 5, Donald Trump announced plans for semiconductor and chip tariffs during an interview with CNBC's Squawk Box. Earlier, he revealed modified reciprocal tariffs on countries. These policy shifts have sparked broader market concerns over a potential trade war, which could lead to higher product prices. This uncertainty and growing fears around global trade restrictions are key reasons why is all crypto down today.

Weakness in the U.S. Services Sector Performance 

The slowdown in economic activity, combined with rising costs, has made investors more cautious. A report on the U.S. services sector from the Institute for Supply Management (ISM) for July 2025 shows a notable decline. This data is a key indicator, as the services sector accounts for the majority of the U.S. economy. Adding to the concern is weakness in hiring and the broader job market, factors that are weighing on financial markets and helping explain why crypto is going down alongside other risk assets.

Bitcoin ETF Outflows 

U.S. Bitcoin ETFs have been losing money for four days straight, with $196 million flowing out on August 5, according to SoSoValue. Fidelity and BlackRock saw the biggest withdrawals. When people keep pulling money out, it makes Bitcoin harder to buy and sell, which hurts investor confidence and keeps Bitcoin stuck below $115,000.

Together, these factors, tariff tensions, weak economic signals, and institutional outflows, paint a clearer picture of why is crypto down today.