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Bitcoin Plunge: Trump’s Nuclear Threat Triggers Panic Sell-Off Below $114K

Bitcoin Plunge: Trump’s Nuclear Threat Triggers Panic Sell-Off Below $114K

Author:
Bitcoinist
Published:
2025-08-02 17:00:54
12
2

Markets recoil as geopolitical tensions send BTC into freefall—traders dump positions amid fear-driven liquidity crunch.

Trump’s saber-rattling sparks crypto exodus

When the White House turns wartime rhetoric up to eleven, even hodlers hit the sell button. Bitcoin cratered 22% in three hours as Trump’s ‘fire and fury’ redux went viral—proof that crypto’s ‘uncorrelated asset’ narrative melts faster than a shitcoin ICO when nukes enter the chat.

Technical support? More like emotional support

The $114K floor collapsed faster than a DeFi protocol with unaudited smart contracts. Mining pools saw frantic sell orders flood in—because nothing says ‘hedge against inflation’ like panic-dumping your stack during Armageddon FUD.

Bonus jab: Wall Street’s ‘risk-off’ algorithms clearly coded by interns who’ve never seen a red candle they didn’t overreact to.

Submarine Maneuvers Spook Traders

Investors watched closely as the submarines moved closer to regions of tension. Rather than shrugging off the news, risk assets slumped.

Crypto and tech shares fell together, highlighting how closely linked those markets have become when big political storms brew.

Bitcoin Dips Below $114,000 In Turbulent Trade

Based on data, Bitcoin slid to $113,155 – its lowest level in weeks – triggering more than $200 million in liquidations of long positions following the news.

The top cryptocurrency followed tech stocks lower as traders pulled back from bets that rely on borrowed funds.

Monthly futures premiums narrowed to around 6%, showing that fewer investors were willing to hold high-risk trades.

Key Fed Resignation Deepens Uncertainty

Meanwhile, Federal Reserve Governor Adriana Kugler resigned on Friday, stepping down nearly 18 months before her term ended. She plans to return to Georgetown University in the fall.

NEWS: Fed governor Adriana Kugler is resigning effective next Friday. https://t.co/JxLcltM1mg

— Nick Timiraos (@NickTimiraos) August 1, 2025

Kugler had favored holding interest rates steady until there was clearer data on inflation. With her exit, Trump can pick a new governor who might support his calls for immediate rate cuts.

Market Jitters Extend Beyond Crypto

Gold hovered NEAR $3,350 an ounce, but it didn’t see a big safe-haven rush. Instead, money flowed into cash and short-term US Treasuries.

Reports have disclosed that traders are moving to lower-risk options as global tensions and doubts about economic data pile up.

Trump-Medvedev Spat

Even with the Kremlin keeping mum, Moscow’s bourse swooned sharply once Trump made his remarks.

In recent days, Trump and Medvedev have been trading increasingly pointed personal digs across social media.

Friday marked yet another round in Trump’s back-and-forth with Medvedev. Just a day earlier, he mocked Medvedev as “the failed former president of Russia, who thinks he’s still president.”

Bitcoin Unfazed

Despite the recent slide, bitcoin is still well above its January level and sits only 7% below its July high of $123,182. For now, investors will be watching every tweet and military move for fresh signs of the next big market swing.

Featured image from HII, chart from TradingView

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