01.08.2025 06:30

President Trump's recent executive order imposing new tariffs on several countries sent shockwaves through global financial markets, impacting Bitcoin significantly. The cryptocurrency plummeted to a three-week low, hovering near $114,000, following a broad sell-off that engulfed both cryptocurrency and stock markets. This sharp decline underscored the interconnectedness of traditional finance and the burgeoning digital asset space.


This dramatic market downturn resulted in substantial liquidations, with over $630 million in long Bitcoin positions being wiped out as traders scrambled to minimize losses amidst the escalating uncertainty. The heightened volatility underscored the inherent risks associated with investing in cryptocurrencies, particularly during periods of geopolitical instability.


Market analysts attribute the sell-off to a confluence of factors. The tariff announcement undoubtedly triggered a wave of profit-taking, as investors sought to secure gains before further potential market declines. Furthermore, the increased uncertainty surrounding global trade relations fostered a risk-averse sentiment, leading many investors to divest from riskier assets like Bitcoin. However, experts generally consider this correction to be temporary, suggesting a potential rebound once the market digests the impact of the new tariffs.


The impact on Bitcoin was notably severe, with a 2.6% drop in value. This pushed the cryptocurrency out of its recent trading range and closer to the next key support level, situated around $111,000. The continued price volatility highlights the susceptibility of Bitcoin and other cryptocurrencies to macroeconomic events and investor sentiment. The situation underscores the need for careful risk management and diversification within any investment portfolio. The interconnectedness of global markets remains a crucial factor influencing the price of cryptocurrencies.