Bitcoin News Today: Bitcoin Falls Below $113,000 Amid Institutional Sell-Offs and Trump Tariffs

Bitcoin’s price dipped below $113,000 in late July and early August 2025 amid aggressive sell-offs by large institutional traders and heightened macroeconomic uncertainty. The decline, which accelerated between July 25 and August 3, marked one of the most significant corrections of the year, contributing to widespread liquidations and increased volatility across the crypto market [1]. On Binance, Bitcoin briefly traded as low as $112,986.73, signaling a shift in market sentiment and raising concerns about the sustainability of the digital asset’s recent upward trend [1].

The selloff intensified on July 28 when Bitcoin broke key support levels, falling further to $113,000. This threshold, previously considered a psychological floor, was breached as macroeconomic pressures mounted, including rising interest rates and new U.S. tariffs signed by President Donald Trump [2]. These developments contributed to broader market instability, with Bitcoin dominance rising as altcoins faced sharper declines [1].

Whale activity played a critical role in amplifying the downward movement. Institutional traders sold approximately 80,000 BTC during the period, with over 56 million transactions recorded on Binance alone [4]. These large-scale sales triggered a cascade of liquidations, exceeding $1 billion in a single day [1]. Binance advised traders to reduce leverage and closely monitor upcoming economic data as uncertainty persisted.

Despite the sharp correction, Bitcoin showed signs of resilience. By July 31, the price had partially recovered to $114,134, approaching key resistance levels [3]. Analysts noted that the partial rebound suggested strong demand from buyers willing to absorb large sell-offs without triggering a more severe downturn [1]. Some traders implemented “buy the dip” strategies, while large holders showed early signs of accumulation [6]. Maintaining a stable hold above $113,000 was seen as crucial for regaining investor confidence and preventing further downward momentum [5].

Looking ahead, the market remains cautious as it awaits further clarity on macroeconomic developments and potential regulatory changes. Analysts continue to emphasize the importance of long-term investment strategies, portfolio diversification, and disciplined risk management [1]. Institutional demand, liquidity conditions, and global economic indicators are expected to continue shaping Bitcoin’s trajectory. The broader crypto community is also keeping a close eye on technological advancements and regulatory frameworks, which are viewed as key to stabilizing market sentiment and fostering long-term growth [1].

The recent price fluctuation underscores the growing influence of macroeconomic factors and large investor behavior in the cryptocurrency market. While volatility remains inherent to digital assets, the event highlights the need for strategic reassessment by traders and investors. As the market navigates this correction, the coming weeks may determine whether this dip marks a temporary setback or a more significant turning point in Bitcoin’s price action [5].

Sources:

[1] Bitcoin Price Drop: Alarming Plunge Below $113,000 (https://coinmarketcap.com/community/articles/68921c5cc8d0247f47f33c29/)

[2] Bitcoin plummets 2.88% as Trump tariffs spark global sell-off (https://www.ainvest.com/news/bitcoin-news-today-bitcoin-plummets-2-88-trump-tariffs-spark-global-sell-2508/)

[3] Bitcoin (BTC) Price Today: Bitcoin Climbs from $113K Dip ... (https://bravenewcoin.com/insights/bitcoin-btc-price-today-bitcoin-climbs-from-113k-dip-will-michael-saylors-third-largest-btc-purchase-spark-a-surge)

[4] Over 56 Million Whale Trades on Binance, Is Bitcoin ... (https://www.mitrade.com/insights/news/live-news/article-3-1011449-20250805)

[5] Daily Crypto Signals: Bitcoin Holds Above ... (https://www.fxleaders.com/news/2025/08/06/daily-crypto-signals-bitcoin-holds-above-113000-ethereum-proposes-fee-market-overhaul-amid-record-etf-outflows/)

[6] Bitcoin fell below $113,000, causing traders to buy the dip (https://www.mitrade.com/insights/news/live-news/article-3-1007754-20250803)