This week brought a wave of interest among U.S. cryptocurrency investors, ignited by comments from Eric Trump. He encouraged fans of Bitcoin and Ethereum to view the recent price declines as an opportunity for investment. As markets fluctuated at the beginning of August, his message resonated with many eager to enter or expand their positions in the crypto space.

Eric Trump Advocates for Investment Amid Market Corrections

According to sources, Trump urged his followers on X to consider this as the perfect moment to purchase cryptocurrencies. He previously made similar statements earlier this year, and since then, Bitcoin has appreciated by 14% while Ethereum has surged 18%. He perceives the current downturn as yet another window for potential investors to acquire assets at lower prices.

Trump’s belief in the potential of cryptocurrencies is evidently strong. He argues that expansion in global M2 money supply supports a price point for Ethereum at or exceeding $8,000. He co-founded American Bitcoin alongside miner Hut 8, intending for it to become a leading BTC holder, which ties his financial interest to the upward movement in cryptocurrency values.

Let me reiterate:

Invest during the dips!!! $BTC $ETH

— Eric Trump (@EricTrump) August 2, 2025

Significant On-Chain Movements Create Unease

Recent on-chain analytics indicate noteworthy sell-offs by prominent figures in the crypto industry. BitMEX co-founder Arthur Hayes recently liquidated assets worth approximately $13 million in various cryptocurrencies like ETH, ENA, and PEPE amidst the market downturn. While this represents only a fraction of the overall market, it certainly contributes to a growing sense of trepidation among investors.

The volatility has been pronounced. Bitcoin plunged below $113,000, reaching an intraday low of $112,820. Ethereum experienced a decrease of nearly 5%, resting around $3,465. Other coins like XRP and SOL have also seen declines of over 5%, impacting short-term traders significantly.

ETF Outflows Create Pressure on Funds

Spot Bitcoin ETFs have faced notable outflows, with reports indicating a loss of around $810 million in a single day. Similarly, Ethereum ETFs broke a 20-day inflow streak, losing $152 million. Collectively, cryptocurrency funds have experienced a total withdrawal close to $1 billion, a figure that certainly raises eyebrows in the financial community.

Experts caution against reading too much into one-day numbers, noting that ETF flows are highly dynamic and can change rapidly. More importantly, analysts suggest looking at the net movement over a more extended period. Yet, witnessing nearly $1 billion in withdrawals can undoubtedly cause jitters in the market.

Market Sentiment Affected by Broader Economic Trends

Analysts are focusing on more than just ETF performance. Recent U.S. job reports for July indicate a slowdown in hiring, and the imposition of new tariffs on crucial imports by President Trump further complicates the economic landscape. These developments have contributed to a decline in risk assets, including those in the crypto sector.

Long-term Bitcoin investors often regard such price dips as a routine aspect of the market, anticipating a rebound following temporary downturns. Conversely, newer investors may feel uneasy when confronted with significant sell-offs and the exit of large funds from the market.

Featured image from Pexels; chart data sourced from TradingView.