Bitcoin Plunges Below $113,000 as SEC Crackdown, AI Disruption, and Tariff Tensions Spook Markets

Bitcoin's bull run hits a wall—dropping under $113,000 as regulatory, tech, and trade fears converge.

SEC jitters shake confidence

Fresh regulatory uncertainty from the SEC sends tremors through crypto markets. Investors brace for potential enforcement actions—another classic case of regulators showing up late to a party they weren't invited to.

AI triggers algorithmic sell-offs

Artificial intelligence trading models amplify the downturn, executing rapid sell orders as volatility spikes. The machines are learning—mostly how to panic faster than humans.

Tariff threats pressure risk assets

Global trade tensions flare, pushing investors toward safer havens. Crypto, still wearing its 'high-risk' label, takes an early hit—because nothing says stability like politicians threatening economic warfare.

Market watches for bounce signals

Traders monitor key support levels while long-term holders see another buying opportunity. Because in crypto, every crash is just a 'discount' until it isn't.

Why the Drop Happened?

The correction gained momentum after reports that the U.S. Securities and Exchange Commission (SEC) is investigating alleged fraud and stock manipulation at Alt5 Sigma, a financial firm that recently signed a $1.5 billion partnership with World Liberty Financial (WLFi). 

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THE SEC IS CURRENTLY INVESTIGATING JON ISAAC, PRESIDENT OF TRUMP'S $1.5B WORLD LIBERTY VEHICLE – ALT5 SIGMA, FOR INFLATING EARNINGS AND SELLING SHARES INTO THE PUMP IN TRANSACTIONS INVOLVING ALT5 SIGMA: THE INFORMATION

WLFi, co-founded by the U.S. President Donald Trump, has raised $550 million through token sales. TRUMP disclosed earning $57.4 million from his stake in June, while his son Eric Trump is set to join Alt5 Sigma’s board.

Adding to the pressure, investors reacted to a 1.5% drop in the Nasdaq 100 after MIT NANDA research showed 95% of companies failed to gain quick revenue from AI pilot projects. The new 50% import tariffs on 407 products by Washington further shook confidence and stoked inflation fears.

In futures markets, open interest had surged to “statistical extremes,” meaning an unusually large amount of borrowed money was betting on a continued rally. This created a fragile environment that led to a cascade of forced selling, or deleveraging, when prices began to fall. Simultaneously, blockchain analytics firm Glassnode noted  bitcoin options showed extreme fear, with the 30-day delta skew hitting 12%, its highest in four months, a signal that traders were rushing to buy “downside protection.”

These factors caused investors to seek SAFE havens. UBS raised its gold forecast to $3,700 by 2026. Despite the panic, analysts say fear often overshoots reality. Bitcoin’s longer-term bull run remains intact, and the crypto may benefit if investors exit riskier stocks.

Also Read: SEC Chair Atkins Says Few Crypto Tokens Are Treated as Securities