Bitcoin Falls Below $115K as Trump Tariffs Shake Markets

Bitcoin has plummeted to its lowest level in three weeks, dropping below $115,000 as US President Donald Trump's new tariff executive order creates widespread market uncertainty.

Bitcoin Price Action and Technical Analysis

The world's largest cryptocurrency fell to $114,250 on Coinbase during early Asian trading on Friday, marking its lowest point since June 11. This represents a significant 2.6% decline that has pushed Bitcoin approximately 6.5% below its all-time high of $122,800 reached on July 14.

The price action has broken Bitcoin below its three-week range-bound channel, with technical analysts identifying the next major support zone around $111,000 if the current downtrend continues without a rebound.

Market Liquidations and Trading Activity

The cryptocurrency market experienced significant turbulence, with massive liquidations affecting trader positions across the board. Over the past 24 hours, 158,000 traders faced liquidations totaling $630 million, according to market data. The majority of these liquidated positions were long trades, indicating widespread bullish sentiment that was quickly reversed.

Additionally, spot crypto markets witnessed substantial outflows, with $110 billion exiting the market over the past 12 hours leading up to the tariff announcement.

Trump's Tariff Executive Order Details

President Trump formalized his promised trade measures late Thursday, implementing significant tariff increases across multiple countries. The executive order included raising tariffs on Canada from 25% to 35%, while setting new rates for countries without existing agreements.

Nations including South Africa, Switzerland, Taiwan, and Thailand now face tariffs ranging between 19% and 39%. The order also confirmed agreements with major trading partners such as the European Union, Japan, South Korea, and the United Kingdom.

Market Expert Analysis and Outlook

Industry experts view the current market dip as a combination of tariff-related uncertainty and natural profit-taking following recent strong performance. Henrik Andersson, chief investment officer at Apollo Capital, noted that the uncertainty over tariffs naturally leads to profit-taking after strong runs in both equity and crypto markets.

"If a deal with China can be made, it would remove a lot of the current uncertainty," Andersson explained, highlighting the potential for reduced market volatility if US-China trade tensions ease.

Nick Ruck, director at LVRG Research, characterized the market movement as reflecting "a mix of tariff deadline fear and broader macroeconomic uncertainty." However, he emphasized that many investors view this selloff as a temporary correction rather than a fundamental structural shift in the market.

Broader Market Impact and Global Response

The tariff announcement affected markets beyond cryptocurrency, with Asian stock markets trading lower on Friday morning. This broader market reaction demonstrates the interconnected nature of global financial markets and the significant impact of US trade policy decisions.

The crypto market decline occurred in the same week that the White House released a comprehensive crypto policy report that was widely considered bullish for the industry, creating a complex backdrop of positive regulatory developments alongside trade policy concerns.

Bitcoin's Recent Performance Context

Despite the current dip, Bitcoin achieved notable milestones in July, posting its highest-ever monthly candle close. The cryptocurrency hit its all-time high during the month and closed July at $115,784, demonstrating the asset's continued long-term strength.

While this wasn't the largest monthly gain in absolute terms, it represents significant progress. The largest monthly increase remains from November, when Bitcoin surged by $26,000 in a single month following Donald Trump's election victory.

Looking Forward: Market Sentiment and Recovery Potential

Market analysts suggest that while tariffs contributed to the recent pullback, the decline was likely amplified by multiple factors including profit-taking after recent all-time highs, ongoing geopolitical tensions, and broader US macroeconomic uncertainty.

The combination of these factors creates a complex trading environment where short-term volatility may continue until greater clarity emerges regarding trade policies and their economic impact. However, the underlying strength demonstrated by Bitcoin's recent performance suggests potential for recovery as market conditions stabilize.

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