Bitcoin News Today: Bitcoin plummets 2.88% as Trump tariffs spark global sell-off

Bitcoin’s price dropped below $113,000 following the announcement of new tariffs by former U.S. President Donald Trump, triggering a broad sell-off across global financial markets [1]. The cryptocurrency lost 1.78% of its value in 24 hours, closing at $113,173.29 at the time of reporting, according to CoinMarketCap data [1]. The decline was driven by fears of inflationary pressures and tighter monetary policy, which have historically weighed on high-risk assets like cryptocurrencies [1].

The selloff intensified as Bitcoin broke key support levels, dropping below the $114,672–$115,734 range to reach $113,000. Analysts noted that this breakdown could signal further downward momentum unless a strong reversal materializes [4]. Over $360 million in positions were liquidated within a 24-hour period as the price fell to $112,800 [5]. This level of volatility highlights the sensitivity of crypto markets to macroeconomic developments and policy announcements.

Despite the sharp initial decline, Bitcoin showed signs of stabilization in the following days. By late July, the price had rebounded toward $115,000, with some observers attributing this movement to renewed ETF inflows and positive market positioning [6]. However, the broader environment remained uncertain, as Bitcoin ETFs saw $333 million in outflows on a single day, indicating a cautious stance from institutional investors [9].

On the accumulation front, large whale activity suggested a potential longer-term bullish outlook. Reports indicated that whales were buying more than 160,000 BTC during the downturn [4]. Additionally, a whale on Bitfinex was noted to be purchasing 300 BTC per day, a pattern often seen before major price reversals [3]. Such accumulation during market pessimism is typically a sign that large holders believe in Bitcoin’s long-term value.

Meanwhile, Bitcoin’s volatility relative to traditional assets reached a significant milestone. By August 1, 2024, the annualized volatility ratio of Bitcoin compared to gold hit a historic low of 2.2 times, indicating a relative reduction in price swings against traditional safe-haven assets [7]. This could reflect either a maturing market or a broader shift in investor risk appetite.

Despite these signs, caution remains in the market. On August 2, Bitcoin closed at $112,934, a 2.88% drop for the day. Analysts noted this as a classic Bollinger Band pattern, potentially signaling a larger price move ahead [8]. Whether Bitcoin can push past the $115,000 resistance and reach $118,000 will depend on broader economic and regulatory developments, including the outcome of Trump’s proposed tariff policies and central bank actions [10].

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Sources:

[1] Bitcoin.com - [https://news.bitcoin.com/bitcoin-drops-below-113k-after-trump-announces-new-tariffs/](https://news.bitcoin.com/bitcoin-drops-below-113k-after-trump-announces-new-tariffs/)

[3] Mitrade - [https://www.mitrade.com/au/insights/news/live-news/article-3-1008147-20250804](https://www.mitrade.com/au/insights/news/live-news/article-3-1008147-20250804)

[4] AInvest - [https://www.ainvest.com/news/bitcoin-news-today-bitcoin-price-falls-4-whales-accumulate-160k-btc-2508/](https://www.ainvest.com/news/bitcoin-news-today-bitcoin-price-falls-4-whales-accumulate-160k-btc-2508/)

[5] CoinDesk - [https://www.coindesk.com/markets/2025/08/05/justin-sun-comes-back-to-earth-with-cosmic-plans-for-tron-ecosystem](https://www.coindesk.com/markets/2025/08/05/justin-sun-comes-back-to-earth-with-cosmic-plans-for-tron-ecosystem)

[6] XT.com - [https://www.xt.com/en/blog/post/asia-morning-briefing-btc-rebounds-toward-115k-as-etf-flows-return-but-traders-still-price-tail-risk](https://www.xt.com/en/blog/post/asia-morning-briefing-btc-rebounds-toward-115k-as-etf-flows-return-but-traders-still-price-tail-risk)

[7] AInvest - [https://www.ainvest.com/news/bitcoin-news-today-bitcoin-volatility-ratio-hits-historic-2-2-times-gold-2508/](https://www.ainvest.com/news/bitcoin-news-today-bitcoin-volatility-ratio-hits-historic-2-2-times-gold-2508/)

[8] XT.com - [https://www.xt.com/en/blog/community-news/2025-08-04T04:47:26.000Z](https://www.xt.com/en/blog/community-news/2025-08-04T04:47:26.000Z)

[9] CoinDesk - [https://www.coindesk.com/daybook-us/2025/08/05/mixed-signals-as-etfs-bleed-millions-bitcoin-ether-rise-crypto-daybook-americas](https://www.coindesk.com/daybook-us/2025/08/05/mixed-signals-as-etfs-bleed-millions-bitcoin-ether-rise-crypto-daybook-americas)

[10] Cryptonews - [https://cryptonews.com/news/price-analysis/](https://cryptonews.com/news/price-analysis/)