Bitcoin News Today: Bitcoin Slides to Three-Week Low Amid Trump Tariffs and Weak Economic Data

Bitcoin has seen a significant pullback, dipping below $115,000 to a three-week low following renewed investor concerns tied to a Trump-led tariff announcement [3]. The decline has sparked debate among analysts and investors about whether this is a typical correction or a signal of a broader market shift [1]. The pullback coincides with a broader economic backdrop marked by weak manufacturing data and a softer-than-expected jobs report, which has fueled speculation about potential Federal Reserve interest rate cuts [5].

Ethereum and ENA Coin have also seen price declines, with ENA Coin facing critical support levels at $0.47, $0.44, and $0.35, according to analyst Ali Martinez [5]. A break below these thresholds could trigger further downward momentum. Meanwhile, Ethereum has shown a modest recovery in July, but analysts like Poppe warn that corrections could still present strategic entry points [5].

July has been a mixed month for the crypto market, with American crypto ETFs recording total inflows of $12.8 billion [5]. Bitcoin ETFs alone saw $1.3 billion in inflows on July 11, reflecting continued institutional demand [5]. This contrasts with traditional benchmarks, as even Vanguard’s S&P 500 ETF struggled to match Bitcoin’s performance [5].

Technical indicators suggest the market may be approaching a turning point. Bitcoin's RSI has dropped below 30, and Ethereum's has fallen to 22, both indicating oversold conditions [6]. A rebound above the 20-day moving average—currently near $118,106—could signal a short-term reversal [5]. If Bitcoin holds the $111,000 support level, a recovery within days to a week is possible [7].

Fundamental factors also support a potential rebound. Bitcoin’s supply constraints have intensified since the April 2024 halving, reducing daily new issuance to around 450 coins [5]. XRP, meanwhile, continues to benefit from Ripple’s efforts to improve regulatory clarity and attract institutional investors [5].

Global liquidity remains robust, with the M2 money supply reaching $55.5 trillion, providing a favorable macroeconomic environment for crypto [5]. Central banks, including the Bank of England, continue to maintain dovish monetary policies, which supports risk-on sentiment [5]. However, rising geopolitical or economic uncertainty could prolong the current correction.

Analysts remain divided on the outlook for the remainder of the year. While some predict two rate cuts by the end of the year, others, like Fed official Bostic, argue inflation pressures may limit monetary easing [5]. Market participants are waiting for clearer signals as volatility remains a defining feature of the crypto space.

Long-term investors see the recent dip as an opportunity for accumulation, particularly for those employing dollar-cost averaging strategies [5]. For the bull case to remain intact, Bitcoin must reclaim key resistance levels, such as $120,000 [8]. A strong breakout with high volume could signal a broader recovery.

Overall, the market appears to be undergoing a typical correction within a larger bullish trend. While caution is warranted, the fundamentals and macroeconomic conditions suggest a potential rebound is on the horizon [5].

Source:

[1] Next Crypto To Explode? Crypto Market Is Down But ... (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/)

[2] Crypto darling XRP under pressure, price dips below $3 (https://m.economictimes.com/news/international/us/crypto-darling-xrp-under-pressure-price-dips-below-3-whats-causing-the-drop-is-a-massive-selloff-coming/articleshow/123042471.cms)

[3] Bitcoin Drops To Three-Week Low On Trump Tariff Order (https://cointelegraph.com/news/bitcoin-dips-below-115k-as-trump-tariff-order-fails-to-comfort-investors)

[4] Are XRP and Bitcoin's Dips Simply Normal Corrections or ... (https://www.nasdaq.com/articles/are-xrp-and-bitcoins-dips-simply-normal-corrections-or-signs-cooling-crypto-market)

[5] Bitcoin News Today: Bitcoin Dips Below ... (https://www.ainvest.com/news/bitcoin-news-today-bitcoin-dips-115-000-institutional-buying-remains-strong-2508/)

[6] Why is Crypto Down Today? RSI Oversold Hinting at ... (https://99bitcoins.com/news/presales/why-is-crypto-down-today-rsi-oversold-hinting-at-rebound-potential/)

[7] When Will the Crypto Market See a Reversal? (https://coinpedia.org/news/when-will-the-crypto-market-see-a-reversal/)

[8] 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)