Bitcoin News Today: Bitcoin Falls Below $115,000 as Trump Tariff Announcement Sparks $195M in Liquidations

Bitcoin’s price has dropped to approximately $112,200 after falling below the critical $115,000 level, according to recent market reports [5]. The decline followed a sharp 4% drop in a short period, with BTC falling from $118,920 to below $114,000, a move attributed to the announcement of new U.S. tariffs by Donald Trump [1]. During this decline, over $195 million in long futures positions were liquidated, and 21,400 BTC were moved to exchanges by short-term investors at a loss [1]. Similar patterns were observed during previous price drops in mid-2025, when large volumes of BTC were sent to exchanges [1].

The drop has placed significant pressure on Bitcoin mining operations, particularly older or less-efficient setups, as profitability continues to decline [1]. Analysts suggest only the most optimized mining operations are likely to remain viable as the market consolidates [1]. At the same time, Bitcoin’s mining difficulty recently reached an all-time high, though some models predict a potential decline in August that could ease some of the operational strain [4].

The broader financial markets have also seen turbulence, with U.S. stocks losing roughly $1 trillion in value amid concerns over inflation and trade policy [6]. This broader downturn appears to have contributed to the heightened volatility in the crypto space, as over $1 billion in crypto assets were liquidated within a 24-hour period [6].

CryptoQuant has highlighted that Bitcoin is now approaching a critical on-chain support cluster [1]. The firm has identified key levels to monitor: on-chain support at $111,600, technical support at $112,000 (a previous all-time high), and the traders’ realized price at $105,500 [1]. Maintaining support at these levels is seen as essential to prevent further downward movement.

Despite the bearish pressure, some analysts remain cautiously optimistic about Bitcoin’s long-term prospects. Its decentralized nature is considered a key advantage, making it less susceptible to geopolitical risks or devaluation from traditional monetary policies like quantitative easing [3]. Additionally, on-chain data indicate that institutional buying activity may still be ongoing, despite the recent price correction [9].

The broader cryptocurrency market has shown some resilience, though it remains uncertain whether this trend will persist [7].

[1] https://www.mitrade.com/au/insights/news/live-news/article-3-1007872-20250803

[3] https://seekingalpha.com/article/4808154-investment-case-for-bitcoin

[4] https://www.tradingview.com/news/cointelegraph:312472b6a094b:0-bitcoin-mining-difficulty-hits-ath-but-is-projected-to-drop-in-august/

[5] https://www.mitrade.com/au/insights/news/live-news/article-3-1007786-20250803

[6] https://thecurrencyanalytics.com/bitcoin/u-s-stock-market-wipes-out-1-trillion-will-bitcoin-drop-further-188481

[7] https://bloomingbit.io/en/feed/news/94107