Asian Markets: Bitcoin Down 2.3%, Tariffs and Profit-Taking Pressure

Bitcoin drops 2.3% to $115,300 amid profit-taking and new tariff tensions, with a new report showing the third major profit-taking wave of the 2023-2025 bull cycle. The White House's global tariffs have dragged down markets in Asia, and historically, digital assets follow equity markets when tariffs are announced. CryptoQuant data shows large spikes in the Spent Output Profit Ratio and significant sell-offs by whales, typically signaling a strong intent to exit positions at peak prices.

Bitcoin (BTC) experienced a significant drop of 2.3% to $115,300 on July 2, 2025, amidst profit-taking and new tariff tensions. The latest data from CryptoQuant indicates a third major profit-taking wave within the 2023-2025 bull cycle. This downturn coincides with a global tariff report that has negatively impacted markets in Asia, with historical trends suggesting that digital assets tend to follow equity markets when tariffs are announced.

The profit-taking wave is evident in the significant spikes in the Spent Output Profit Ratio (SOPR) and substantial sell-offs by whales, both of which are strong indicators of traders exiting positions at peak prices. The SOPR, which measures the ratio of realized profits to realized losses, spiked, suggesting a high level of profit-taking activity. Additionally, large-scale liquidations in the derivatives market have added to the selling pressure.

The White House's announcement of global tariffs has contributed to market uncertainty. Historically, such announcements have negatively impacted equity markets, and by extension, digital assets. The tariff tensions have led to a broader market downturn, with Bitcoin being no exception. The tariffs have increased geopolitical risks and inflation concerns, prompting investors to seek safer assets.

In the short term, if Bitcoin sellers continue to dominate the market, a price drop to absorb long liquidity in the $115,000 to $111,000 range seems likely. For the bulls, the most desired outcome would be a strong bid at $111,000, generating a high volume spike to reclaim the range above $116,000. An even better outcome would involve the spot and perpetual futures CVD turning positive as buyers make a push in both markets to secure a daily close above the $120,000 resistance.

Investors should remain cautious and informed. The recent price drop provides an opportunity for those who believe in Bitcoin's long-term potential to consider dollar-cost averaging and other risk management strategies. Diversifying portfolios and conducting thorough research can help navigate the volatility in the cryptocurrency market.

References:
1. [Cointelegraph](https://cointelegraph.com/news/bitcoin-range-chop-continues-but-a-breakout-is-brewing)
2. [Bitcoinworld](https://bitcoinworld.co.in/bitcoin-price-drops-below/)