Bitcoin drops below $115,000 as Trump tariff order rattles markets

Traders Union
All News
Crypto
Bitcoin drops below $115,000

Key takeaways

- Bitcoin dropped by 2.6% on the day, now standing 6.5% below its all-time high of $122,800.

- More than $630 million in leveraged positions were liquidated, affecting 158,000 traders.

- Trump's executive order introduced a range of tariffs on countries failing to meet trade deal deadlines, including South Africa, Switzerland, Taiwan, and Thailand.

- Cryptocurrency markets, along with Asian stock markets, experienced a decline after the tariffs were announced.

Trump's tariff order fails to comfort investors

Bitcoin experienced a 2.6% decline, maintaining a price of $115,204, just slightly above its immediate support level. Bitcoin's drop marks a break from its previous three-week range-bound trading, with some analysts predicting the next support zone lies at around $111,000.

BTC price dynamics (May 2025 - July 2025). Source: TradingView

This dip in Bitcoin's price came in the wake of the executive order formalized various trade tariffs, including an increase on Canada from 25% to 35% and new tariffs for countries like South Africa and Thailand, ranging from 19% to 39%. These actions left markets uncomfortably positioned, with the expectation that Bitcoin would not rally in the short term.

Despite a largely positive tone from the White House's crypto policy report earlier in the week, the tariff-related announcements unsettled investors. The steep decline in Bitcoin's price reflects broader market unease, especially after traders had anticipated that the policy changes might spark a rebound. The crypto markets witnessed $110 billion exit from the spot market in just 12 hours following the announcement. With the Federal Reserve and government policies still in flux, Bitcoin's support level could face additional pressure, particularly if tariffs on major trading partners disrupt global economic activity.

Moreover, Bitcoin’s dip follows a larger trend in crypto markets, where long positions were the most impacted. According to CoinGlass, 158,000 traders were liquidated over 24 hours, contributing to the overall market decline. With $630 million worth of leveraged positions closed, the effects on investor confidence and market dynamics were clear.

These consequences can be explained by fears of a further slowdown in economic growth, especially after Trump imposed tariffs of up to 35% on Canada, 39% on Switzerland, and 20% on Taiwan, which could damage trade and disrupt global supply chains.

Loading...

The tweet was deleted by the author.

But we saved everything 🙂.

Conclusion and implications

The immediate fallout from Trump's tariff decision highlights ongoing uncertainty in the markets, which could delay Bitcoin's recovery. While some market analysts suggest a potential rebound once the policy landscape becomes clearer, others worry that the broader economic implications of these tariffs could have long-lasting effects on both traditional and digital asset markets.

Going forward, all eyes will be on the Federal Reserve and future regulatory moves to gauge whether this recent downturn is just a temporary setback or a sign of a prolonged bearish trend in cryptocurrencies.

We also reported earlier that Bitcoin price edges higher 0.39% as Fed holds rates, signals data-dependent stance at July FOMC.

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.