Bitcoin News Today: Bitcoin Dips Below $115,000 as Trump Tariffs and High PCE Inflation Trigger $751M Market Liquidations

Bitcoin’s price fell below $115,000 on August 1, 2025, amid intensifying macroeconomic pressures, with investors reacting to shifting Federal Reserve policy and new tariffs announced by former U.S. President Donald Trump [1]. The decline marked a three-week low for the world’s largest cryptocurrency, with over $630 million in liquidations recorded during the sell-off [1]. The broader digital asset market saw significant losses, as profit-taking and heightened risk aversion pushed Bitcoin to a key support level [2].

The selloff was driven by a combination of factors, including Trump’s newly introduced tariffs, which sparked widespread market volatility [2]. Over $110 billion in capital reportedly exited spot crypto markets within 12 hours following the announcement [2]. Meanwhile, rising PCE inflation data reinforced concerns about tighter monetary policy and higher borrowing costs, further exacerbating the downward trend [5]. The U.S. Federal Reserve’s continued hawkish stance also contributed to the risk-off sentiment across asset classes, with Bitcoin particularly sensitive to these macroeconomic shifts [8].

Despite the sharp decline, no immediate on-chain crises were reported [1]. Ethereum, the second-largest cryptocurrency, fell roughly 5% but showed some resilience amid the broader downturn [1]. Altcoins also faced pressure, with total liquidations across the market reaching $751 million within 24 hours [9]. Institutional investors, meanwhile, reduced exposure amid elevated interest rates, resulting in negative net flows and contributing to the downward momentum [1].

Industry leaders such as Binance’s Changpeng Zhao and Ethereum co-founder Vitalik Buterin have remained silent on social media, offering no public commentary on the recent volatility [1]. Similarly, the Federal Reserve has not issued new policy statements regarding digital assets, though its influence on market conditions remains evident [1].

Analysts have interpreted the drop as a potential correction rather than a long-term bearish signal. Historical precedents suggest that similar price retracements have often been followed by bullish recoveries, particularly in the aftermath of major economic or geopolitical shocks [1]. Arthur Hayes, co-founder of BitMEX, noted that while fear is currently driving the market, such corrections have historically acted as bullish indicators for cryptocurrencies in the long run [1].

The current environment has reignited discussions about the correlation between crypto and traditional financial markets. Bitcoin’s sensitivity to macroeconomic shifts underscores its role as a global asset increasingly influenced by central bank policy and broader economic trends [6]. As investors wait for clearer signals from economic data and policymaker guidance, further downward pressure remains a possibility in the near term [5].

[1] [Bitcoin slips below $115200 as U.S. tariffs rattle markets](https://m.economictimes.com/markets/cryptocurrency/crypto-news/bitcoin-slips-below-115200-as-u-s-tariffs-rattle-markets-ethereum-solana-dogecoin-fall-up-to-8/articleshow/123038529.cms)

[2] [Bitcoin Drops Below $115000 as Trump's Tariffs Trigger ...](https://coincodex.com/article/70911/bitcoin-tariffs-trump-market-selloff/)

[4] [Crypto: A Weak Start to a Difficult Month](https://m.fastbull.com/news-detail/crypto-a-weak-start-to-a-difficult-month-4338008_0)

[5] [Bitcoin drops below $115000 as Trump tariffs and higher ...](https://www.ainvest.com/news/bitcoin-news-today-bitcoin-drops-115-000-trump-tariffs-higher-pce-inflation-trigger-crypto-selloff-2508/)

[6] [Bitcoin Dips Below $115000 Amid Economic Uncertainty](https://www.bitget.com/news/detail/12560604890449)

[7] [Bitcoin price: World's top cryptocurrency tanks and these ...](https://m.economictimes.com/news/international/us/bitcoin-price-worlds-top-cryptocurrency-tanks-and-these-could-be-the-reasons/articleshow/123041828.cms)

[8] [Why Bitcoin Price is Down Today? Is a Reversal Coming?](https://coinpedia.org/news/why-bitcoin-price-is-down-today-is-a-reversal-coming/)

[9] [Altcoins lead crash as $751M liquidated in last 24 hours ...](https://cryptoslate.com/altcoins-lead-crash-as-751m-liquidated-in-last-24-hours-as-bitcoin-falls-to-july-low/)