Bitcoin Plunges Under $115K Amid Tariff Turmoil—Here’s Why Traders Aren’t Panicking
Black swan event or buying opportunity? Bitcoin's sharp drop below $115,000 triggers market-wide tremors as new tariffs rattle traditional finance.
When macro shocks hit, crypto flexes its muscles. While stocks and commodities reel from the tariff bombshell, Bitcoin's 24-hour trading volume spikes 47%—proof that digital gold still attracts flight capital.
Wall Street's tariff tantrum vs crypto's cold-blooded resilience. As legacy markets hyperventilate over trade policy, blockchain networks process transactions like nothing happened—another reminder that decentralized systems don't beg for regulatory permission slips.
Bonus jab: Meanwhile, hedge funds are still trying to short Bitcoin with 1998-era risk models. Good luck with that.
In brief
- Bitcoin fell to $114,250, its lowest price since June 11, after Trump’s new tariffs triggered market uncertainty.
- Over $630 million in long positions were liquidated in 24 hours as $110 billion exited spot markets.
- Despite the pullback, Bitcoin closed July with its highest monthly candle ever at $115,784.
What’s happening?
Bitcoin dipped to $114,250 on Coinbase during Asia trading hours, its lowest point since June 11, before recovering slightly. The drop puts Bitcoin down 6.5% from its July 14 all-time high of $122,800, and firmly below the $115,000-$118,000 range it had held for much of the past three weeks.
The decline came on the heels of Trump’s announcement late Thursday, in which he formalized a new slate of tariffs targeting Canada, Switzerland, Taiwan, Thailand, and others. While the WHITE House struck finalized deals with key allies such as the EU, Japan, and the UK, markets were rattled by uncertainty surrounding the broader trade agenda. Nick Ruck, director at LVRG Research, said:
This week’s market dip reflects a mix of tariff deadline fear and broader macroeconomic uncertainty. While tariffs contributed to the pullback, the dump was likely exacerbated by profit-taking after recent ATHs, lingering geopolitical tensions, and U.S. macro uncertainty.
$630M in liquidations
According to CoinGlass, the sudden move liquidated more than 158,000 traders in 24 hours, totaling $630 million in losses, mostly from long positions. The sell-off also coincided with $110 billion in capital exiting the spot crypto market over just 12 hours.
Analysts now look to $111,000 as the next major support zone. A break below that could send bitcoin into deeper correction territory, although many remain optimistic that the move is a healthy cooldown after months of gains. Henrik Andresson, CIO at Apollo Capital, said:
If a deal with China can be made, it WOULD remove a lot of the current uncertainty. Until then, we’re likely to see more volatility across risk assets.
A mixed macro week
Ironically, the tariff news comes just days after the White House released a pro-crypto policy report, widely seen as a tailwind for the digital asset space. And despite the short-term turbulence, Bitcoin still posted its highest-ever monthly candle close in July, finishing at $115,784. That said, it wasn’t the largest monthly gain on record. That title remains with November 2024, when Bitcoin surged $26,000 in a single month following Trump’s election win.
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