Bitcoin News Today: Bitcoin drops below $115,000 as Trump tariffs and higher PCE inflation trigger crypto selloff

Late July 2025 saw a broad selloff across the cryptocurrency market, with Bitcoin dipping below $115,000 and Ethereum falling under $3,700. The downward movement was driven by macroeconomic concerns, particularly persistent inflation and the prospect of new tariffs introduced by the Trump administration. The core Personal Consumption Expenditures (PCE) index, the Federal Reserve’s preferred inflation gauge, rose to 2.8% year-over-year in June, exceeding expectations and reinforcing concerns about inflation remaining above the Fed’s 2.0% target [1].

In parallel, new tariff measures were formalized via executive order, with some global trading partners facing tariff hikes of up to 39%. Canada, for instance, now faces a 35% tariff, up from 25%, and the changes will take effect seven days after the order’s publication, allowing for potential negotiations [1]. The market response to these developments was immediate. The likelihood of a 25 basis point rate cut in September had dropped from over 60% to 41% within a week, according to CME FedWatch data, as traders increasingly priced in a pause in rate cuts for the remainder of the third quarter [1].

The crypto market bore the brunt of these macro pressures. Over $570 million in long crypto positions were liquidated within 24 hours, with Dogecoin [DOGE] and Cardano [ADA] falling as much as 8%, and Ripple [XRP] dropping 6%. Solana [SOL] and Binance Coin [BNB] also saw significant declines, at 6.7% and 3%, respectively [1]. These losses were mirrored in traditional asset classes, with the S&P 500 Index (SPY) declining 37 basis points as investors processed the tariff announcements [1].

Despite the sharp sell-off, some analysts argue that the current downturn may be overstated. While the tariffs could temporarily boost inflation, they are unlikely to lead to sustained price increases. The Fed has previously suggested that such inflationary pressures from trade policy are transitory [1]. Additionally, on-chain data show continued accumulation of large-cap assets by whale investors, indicating some level of underlying confidence [1]. The expansion of the global M2 money supply also supports a broader narrative of liquidity in the financial system [1].

Bitcoin’s price has found potential support just above $115,000, and some investors are viewing the correction as a buying opportunity. Institutional demand for BlackRock’s spot Bitcoin and Ethereum ETFs also remains strong, signaling continued interest from traditional financial actors [1]. Large-cap cryptocurrencies continue to be the preferred targets for accumulation, while smaller altcoins like Bonk and SPX6900 show early signs of recovery [1].

The market remains highly sensitive to developments around inflation and Fed policy. While the recent selloff has raised concerns about a possible end to the bull market, most indicators point to the current downturn being driven by short-term profit-taking rather than a structural shift in sentiment [1].

Source:

[1] https://en.cryptonomist.ch/2025/08/01/crypto-prices-dip-on-hot-pce-inflation-data-higher-trump-tariffs-is-the-bull-market-over/

[2] https://99bitcoins.com/news/altcoins/live-crypto-news-today-next-crypto-to-explode-crypto-market-is-down-but-whales-keep-accumulating-eth-as-xrp-price-retests-support-level/

[3] https://fortune.com/2025/08/01/stocks-investors-trump-tariffs/