Bitcoin News Today: Trump Tariffs Spark Crypto Selloff, Bitcoin Dips Below $115,000

The U.S.-EU trade deal announced in July 2025 under President Donald Trump has triggered significant volatility in the cryptocurrency market, with Bitcoin and Ethereum experiencing sharp price corrections [1]. The agreement, which includes a 15% tariff cap on EU imports and increased EU energy purchases, has led to immediate shifts in investor sentiment and market dynamics [1].

In the wake of the announcement, Bitcoin dropped below $115,000 for the first time since June 11, with over $630 million in long positions liquidated as traders reacted to the uncertainty [1]. The broader crypto market also saw a decline, with Ethereum losing nearly 5% and altcoins like XRP and meme coins such as pump.fun and Pudgy Penguins suffering even greater losses [1]. This selloff marked a continuation of a trend seen earlier in the year when Bitcoin briefly fell to around $75,000 amid concerns over inflationary pressures from high tariffs [1].

Despite the initial panic, investor sentiment stabilized relatively quickly, with Bitcoin recovering to a 12-month high shortly after the selloff [1]. Thomas Lee, Founder of Fundstrat Global Advisors, noted that removing "tail risks" benefits both equities and Bitcoin, as the latter is increasingly viewed as a hybrid asset bridging traditional risk and hedging characteristics [1]. The rapid recovery suggests that, while the market is highly sensitive to macroeconomic developments, it also demonstrates resilience in the face of short-term shocks.

Historical patterns indicate that similar U.S. trade measures have historically caused short-lived volatility, with asset recoveries typically following initial declines [1]. This aligns with the current scenario, where renewed investor confidence has played a key role in supporting the crypto market's rebound. However, analysts warn that the aggressive tariff hikes—some of the highest since World War II—could backfire economically, potentially creating self-inflicted harm without delivering long-term benefits [1].

The erratic nature of Trump’s trade announcements has compounded the uncertainty, particularly given typically lower trading volumes during the summer months, making it difficult for Bitcoin to stabilize in the near term [1]. Meanwhile, the potential for a U.S.-China trade deal by August 12 remains a key unknown, as both sides work to avoid the full 145% tariff scenario on Chinese goods [1].

The broader economic implications of these tariffs are also unfolding, with the U.S. labor market showing signs of softening, prompting speculation about potential Federal Reserve rate cuts and influencing crypto trends like Bitcoin and Ethereum [1]. As retailers brace for higher costs and consumers face potential price increases, the ripple effects of this trade conflict could extend beyond financial markets and into everyday economic activity [1].

Source: [1] Trump Tariffs Return — What Does It Mean for Bitcoin and Crypto? (https://cryptonews.com/exclusives/trump-tariffs-return-what-does-it-mean-for-bitcoin-crypto/)