Bitcoin News Today: Trump Tariffs Spark Bitcoin Sell-Off as BTC Dips Below $115,200

Bitcoin faced a sharp sell-off in late July and early August 2025 as U.S. President Donald Trump’s newly imposed tariffs triggered a broad shift toward risk aversion. The executive order reimposed heavy import duties on goods from 69 countries, including significant levies on selected Canadian products, effective August 1. This sparked immediate volatility across global markets, with traders abandoning leveraged positions and shifting to cash, compounding downward pressure on crypto assets [1].

Bitcoin dropped below $115,200 amid the turmoil, triggering widespread liquidations and a sharp correction from recent highs near $117,500 [2]. Altcoins also suffered, as investors favored safer assets. The market reaction was exacerbated by limited liquidity, compounding the speed of the sell-off. Ethereum ETFs, however, recorded inflows of over 8,100 ETH, illustrating a mixed investor outlook [1].

The Fed’s refusal to cut interest rates, despite dovish expectations, intensified the bearish sentiment. Federal Reserve Chair Jerome Powell warned of “tariff inflation,” signaling that the central bank remained focused on inflation control rather than supporting risk assets [2]. This stance, combined with ongoing macroeconomic stress, created a challenging environment for Bitcoin, which saw outflows from ETFs, including a $88.73 million withdrawal from the ARK21Shares fund [1].

Amid the volatility, the Trump administration’s continued accumulation of a strategic Bitcoin reserve emerged as a key bullish factor. U.S. digital asset chief Bo Hines confirmed the nation’s stockpile has grown to over 198,000 BTC, the largest globally. However, the White House’s statement that the reserve “generally will not be sold” left room for future liquidation, depending on economic conditions, which has raised investor concerns [2].

The U.S. pro-Bitcoin stance contrasts sharply with the Fed’s hawkish outlook. While the administration supports tokenization and stablecoin infrastructure, the central bank remains focused on taming inflation, creating a tug-of-war for Bitcoin’s near-term trajectory [2]. Meanwhile, global markets also felt the ripple effects, with the FTSE 100 and U.S. stocks declining amid a shaky job market, and the Canadian dollar facing renewed pressure from tariff-related trade tensions [5][7].

Despite the recent sell-off, Bitcoin’s technical indicators suggest potential for a recovery. A bull flag pattern emerged on the price chart, with BTC climbing from $100,000 to $123,000 before consolidating into a descending wedge. A recent breakout pushed the price near $125,000 [1]. Analyst Javon Marks noted that if momentum holds, Bitcoin could still reach $130,000. However, historical trends show that August and September have traditionally been weak months for Bitcoin, with price declines observed in eight of the last twelve years [1].

Traders are now watching for signs of stabilization and potential for a new breakout, with market sentiment closely tied to the outcome of the next PCE inflation data release. In the short term, Bitcoin remains vulnerable to macroeconomic headwinds, but long-term optimism persists given the administration’s continued support and strategic accumulation [2].

Source:

[1] title: Trump tariff jitters: Bitcoin dips below Rs ... (https://timesofindia.indiatimes.com/business/cryptocurrency/tariff-jitters-bitcoin-dips-below-rs-115200-crypto-market-cap-down-by-3-82/articleshow/123039538.cms)

[2] title: Trump Pushes Bitcoin Reserve as Powell Inflation Warning ... (https://walletinvestor.com/magazine/trump-pushes-bitcoin-reserve-as-powell-inflation-warning-shakes-btc-markets)

[4] title: Dow Jones Declines Amid Tariff Concerns (https://m.economictimes.com/crypto-news-today-live-31-jul-2025/liveblog/123004697.cms)

[5] title: FTSE 100 and US stocks sink amid shaky US job market ... (https://uk.finance.yahoo.com/news/ftse-100-live-markets-trump-tariff-deadline-074324463.html)

[6] title: Trump Tariff Pain Spreads With Ford, UPS and Stanley ... (https://www.bloomberg.com/news/newsletters/2025-08-01/trump-tariff-pain-spreads-with-ford-ups-and-stanley-warning-of-slowdown?srnd=phx-economics-v2)

[7] title: USD/CAD Crisis: Tariffs, Divergence, and the Looming ... (https://www.investing.com/analysis/canadas-currency-crisis-tariffs-divergence-and-the-looming-risk-of-a-rate-cut-200664699)