Crypto Market Doomed? How Trump’s Trade War Could Spark a Bitcoin Fire Sale

Trade wars are back—and crypto might be the first casualty. As Trump reignites global tensions, Bitcoin’s price teeters on the edge of a sell-off. Here’s why.

### The Domino Effect: Trade Wars and Crypto Volatility

When tariffs fly, markets shudder. Bitcoin, the so-called 'digital gold,' isn’t immune. Investors fleeing risk could dump crypto faster than a Wall Street banker dumps bad stock tips.

### Liquidity Crunch or Buying Opportunity?

Panic sells. Smart money stacks sats. If history repeats, a dip below key support levels might trigger a cascade—or a golden entry point for hodlers. Just don’t expect traditional finance to notice until it’s too late.

### The Cynic’s Take

Meanwhile, hedge funds will blame 'macro conditions' while quietly rebalancing into BTC. Some things never change—like the herd’s inability to read a chart.

A Familiar Shock: Markets Recoil as Trump Resurrects Trade War Tactics

Trump’s move, framed as an extension of his hardline “Liberation Day” agenda, came via letters issued to Japan and South Korea, warning of imminent 25% tariffs. The accusations were unfair trade practices and transshipping tactics used to dodge U.S. duties. While markets were still digesting this shock, the WHITE House doubled down.

By the end of the day, new tariff plans were unveiled: up to 40% on Laos and Myanmar, 30% on South Africa, and 25% on Malaysia and Kazakhstan. TRUMP even floated the idea of an extra 10% levy on any country aligning with BRICS—a clear swipe at Brazil, Russia, India, and China.

This flurry of aggressive trade threats, coupled with legal questions surrounding Trump’s invocation of the International Emergency Economic Powers Act (IEEPA), sent investors scrambling. Risk appetite vanished, and Bitcoin—a supposed hedge against inflation and centralized disruption—was caught in the crossfire.

Bitcoin Takes a Hit: Correlation with Risk Assets Tightens

Just days after flirting with an all-time high of $111,814, Bitcoin (BTC) lost traction. By Monday afternoon, it slipped 0.74% to $107,936.08, echoing the broader market slide. 

Source: TradingView

Analysts point to a concerning trend: Bitcoin, once heralded as digital gold, is behaving more like a tech stock—sensitive to macroeconomic stress and geopolitical shocks. The synchronous decline in equities and BTC suggests that in times of uncertainty, even the most resilient digital assets are being treated as risk-on plays.

Technical Fragility: Bitcoin Faces Crucial Support Zones

While Bitcoin’s recent dip appears modest on the surface, underlying price action paints a fragile picture. BTC currently trades NEAR $108,000, but multiple bounces from the $107,300 area have formed a cluster of equal lows—a magnet for liquidity sweeps.

A decisive break below this level could trigger a cascade of stop-loss orders, potentially dragging bitcoin into a “fair value gap” between $107,000 and $106,300. In that case, analysts warn of a sharp drop toward $105,000 unless buyers step in swiftly.

On the upside, Bitcoin remains above the 200-day EMA on the one-hour chart, keeping hopes of a bullish reversal alive. A strong recovery from below $107K—especially a clean break above the $109,500 resistance—could invalidate the bearish scenario and pave the way for a rally toward $112,000.

Navigating Chaos Requires Strategy—That’s Where Outset PR Comes In

In a climate where macroeconomic chaos bleeds into crypto valuations, narrative clarity and timely exposure have never been more critical. That’s why more Web3 projects are turning to Outset PR—a performance-first crypto PR agency engineered for precision and results.

If PR has ever felt like trying to navigate a foggy road without headlights, Outset PR brings clarity with data.

Unlike firms that rely on mass outreach and templated packages, Outset PR offers tailored PR campaigns, crafted to fit a project's market stage, goals, and budget. Backed by retrospective and real-time metrics, every campaign is tied to perfect timing, product-market fit messaging, and smart media selection.

Outset’s proprietary content distribution tech helps clients dominate high-discovery surfaces. Take ChangeNOW, for example: after partnering with Outset, they achieved a sustained 40% boost in reach, amplified by a Google Discover-powered editorial campaign.

Outset PR facilitates insight-driven execution. Its in-house analytics desk spots trends before they hit mainstream radar. By evaluating media outlet visibility, domain activity, and traffic sources, Outset helps clients fine-tune their strategy for high-engagement regions like the US and UK.

In a time when even Bitcoin can’t escape trade policy shockwaves, Outset PR ensures your message lands where it matters most.

Conclusion

The road ahead remains unclear. If Trump proceeds with full-scale tariffs on August 1, we could see renewed sell pressure across risk assets—including crypto. But if negotiations yield softer terms, a relief rally may follow.

What’s certain is that Bitcoin’s price is no longer driven purely by crypto-native factors. Macroeconomic policy, international trade dynamics, and media narratives now play a bigger role than ever.

In this unpredictable landscape, projects that position their brand proactively—through smart storytelling, strong media targeting, and strategic timing—are far more likely to weather the storm. And with a partner like Outset PR, navigating this storm just got a whole lot easier.

You can find more information about Outset PR here:

Website: outsetpr.io

Telegram: t.me/outsetpr 

X: x.com/OutsetPR 

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.