Bitcoin Slides Below $115K as Tariff Shock Hits Markets

Bitcoin hit a three-week low early Friday as investors reacted to Donald Trump’s sweeping executive order on trade tariffs, triggering a broader sell-off across stocks and crypto markets.

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 finalized agreements with key allies — 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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Frequently Asked Questions (FAQ)

Market Impact and Bitcoin Price

Q: What caused Bitcoin to slide below $115,000? A: Bitcoin's price drop was primarily triggered by the market's reaction to President Donald Trump's announcement of new trade tariffs, which created market uncertainty and led to a broader sell-off across stocks and cryptocurrencies. Q: How much in long positions were liquidated due to this market movement? A: Over $630 million in long positions were liquidated within a 24-hour period. Q: What was the total capital outflow from the spot crypto market during this period? A: Approximately $110 billion exited the spot crypto market in just 12 hours. Q: What is the next significant support level for Bitcoin? A: Analysts are watching $111,000 as the next major support zone for Bitcoin. Q: Did Bitcoin end July on a positive note despite the pullback? A: Yes, despite the intraday dip, Bitcoin closed July with its highest monthly candle ever, finishing at $115,784.

Market Sentiment and Future Outlook

Q: What are the key factors contributing to the current market dip, according to analysts? A: Analysts attribute the market dip to a combination of fear regarding tariff deadlines, broader macroeconomic uncertainty, profit-taking after recent all-time highs, lingering geopolitical tensions, and general U.S. macro uncertainty. Q: What would help alleviate current market uncertainty? A: According to analysts, a deal with China would significantly reduce the current uncertainty in the market. Q: What is the general sentiment regarding Bitcoin's recent pullback? A: While the pullback caused a price dip, many analysts view it as a healthy cooldown after a period of sustained gains.

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Crypto Market AI's Take

The recent market volatility, driven by geopolitical events like tariff announcements, highlights the interconnectedness of traditional financial markets and the cryptocurrency space. At Crypto Market AI, our platform utilizes sophisticated AI agents and advanced algorithms to navigate such uncertainties. Our AI-driven market analysis and trading tools aim to provide users with deeper insights and automated strategies that can adapt to changing market conditions. Understanding how macroeconomic factors influence crypto prices is crucial, and our platform is designed to deliver this intelligence in real-time, helping traders make informed decisions amidst global economic shifts.

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More to Read:

• What Drives the Prices of Cryptocurrency? A Complete Investor's Guide
• AI-Driven Crypto Trading Tools Reshape Market Strategies in 2025
• Bitcoin Record Monthly Close: $115K, August Gains Ahead?

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Source attribution: Originally published at Cointribune on Fri, 01 Aug 2025 14:05:00 GMT.