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Key Takeaways:
- Bitcoin fell to $114,300, marking a three-week low amid global market jitters.
- Trump’s new trade tariffs spurred $644M in crypto liquidations.
- Despite the drop, Bitcoin posted a record-high monthly close in July.
Bitcoin fell to $114,300 in early trading on August 1, marking its lowest level since June 11. The 2.6% daily drop comes as the broader crypto market shed over $110 billion in value within 12 hours, according to CoinMarketCap and CoinGlass. The sell-off triggered $644 million in liquidations across digital assets, with Bitcoin alone accounting for $152 million—mostly from long positions.
This recent move ends a period of price consolidation and puts Bitcoin nearly 7% below its all-time high of $123,000 set on July 14. Analysts are now eyeing $111,000 as the next major support zone.
Trump’s Tariffs Rattle Risk Assets
The catalyst for the market drop came Thursday night when President Trump signed an executive order increasing tariffs on countries lacking trade deals with the U.S. Tariffs as high as 39% will now apply to imports from regions like South Africa, Taiwan, and Thailand. Canada’s tariffs increased from 25% to 35%, while existing trade pacts with the UK, EU, Japan, and South Korea remain unchanged.
The surprise move injected fresh volatility into equities and crypto markets alike, reinforcing how tightly Bitcoin remains tethered to macroeconomic developments.
Monthly Close Still Signals Long-Term Strength
Despite the sharp decline, Bitcoin managed to end July with its highest monthly candle close on record at $115,784. That figure points to broader bullish momentum even as short-term volatility rises.
Also Read: Metaplanet to Raise $3.7B via Preferred Shares to Accelerate Bitcoin Accumulation Plan
Earlier in the week, a White House crypto policy report had briefly buoyed sentiment, but Friday’s market action underscores how external policy shocks can still override fundamentals in the near term.
While Bitcoin’s price dipped under pressure from macro factors, the strong monthly close highlights that investor optimism remains intact on longer timeframes. As global trade tensions rise, volatility is likely to persist.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
