Bitcoin News Today: Trump Tariffs Spur Crypto Sell-Off, Bitcoin Dips 3% Below $115,000

Late July 2025 saw a sharp downturn in the global cryptocurrency market, driven by renewed concerns over U.S. trade policies following the announcement of new tariffs by President Donald Trump’s administration. The move triggered widespread panic selling, with major cryptocurrencies like Bitcoin and Ethereum experiencing significant price declines. Bitcoin fell below $115,000, marking a three-week low, while Ethereum and other altcoins also saw notable drops, pushing the broader crypto market cap down by 3.82% [3].

The impact of the tariffs was not limited to price movements. Over $635 million in leveraged positions were liquidated as traders scrambled to mitigate losses, with long positions particularly vulnerable to a sharp intraday reversal. Vikram Subburaj, CEO of Giottus Exchange, noted that Bitcoin dropped 3% to trade near $115,300 amid fresh U.S. tariff announcements and a wave of profit-taking [9].

The sell-off mirrored broader market trends, as U.S. crypto-related equities also saw declines. Investors reacted to the combination of poor economic data and the looming threat of higher tariffs, which contributed to a larger wave of risk aversion. Altcoins were especially hard hit, with prices slumping in anticipation of key U.S. jobs data, which could shape the Federal Reserve’s next steps on interest rates [2].

While the U.S. tariffs do not directly impact cryptocurrencies, their influence on investor sentiment has been profound. High interest rates, rather than the tariffs themselves, pose a more direct threat to crypto markets by reducing the appeal of high-risk assets like Bitcoin. The Federal Reserve has indicated it will hold its current rate policy until the economic effects of the tariffs become clearer, a stance that has further weighed on risk appetite [4].

The timing of the tariff announcements compounded an already fragile market environment. The U.S. nonfarm payrolls report, due later in the week, was expected to offer insight into the labor market and the likelihood of a rate cut in September. However, market expectations for a 25 basis point cut in September dropped significantly after the Fed’s most recent policy meeting, signaling a more hawkish stance [5].

Geopolitical concerns were also heightened by the tariff policy. While some major economies reached last-minute trade agreements with the U.S., the imposition of tariffs on countries like Canada, India, and China contributed to a more volatile global market environment. Analysts warned that the uncertainty created by Trump’s trade agenda could prolong instability, particularly for asset classes highly sensitive to macroeconomic conditions [6].

The U.S. dollar extended its gains against major currencies, posting its best weekly performance in nearly three years, while the yen and Canadian dollar suffered their worst weekly losses. The Bank of Japan’s signals of delayed rate hikes added to the pressure on global currencies [7].

Inflation data also showed early signs of the tariffs’ impact on U.S. prices, raising concerns about their potential to slow consumer spending and economic growth. While the U.S. economy remains resilient for now, prolonged trade tensions could eventually dampen global demand for commodities like oil [8].

The crypto market’s response to the tariff news underscores the sector’s sensitivity to macroeconomic and geopolitical developments. With Bitcoin futures open interest having surged before the selloff, the market was particularly vulnerable to rapid price swings. Leverage magnified the downturn, with many traders facing forced liquidations as prices moved against their positions [9].

As the market continues to adjust to the new tariff landscape, attention remains focused on the upcoming U.S. nonfarm payrolls report and the Federal Reserve’s policy direction. These developments are likely to determine whether the crypto market can stabilize or face further declines [10].

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[1] title1: Are Trump's tariffs crashing XRP today? (url1: https://finance.yahoo.com/news/trump-tariffs-crashing-xrp-today-170124542.html)

[2] title2: Crypto stocks tumble alongside BTC, equities as tariff fears resurface (url2: https://cointelegraph.com/news/crypto-stocks-tumble-alongside-btc-equities-as-tariff-fears-resurface)

[3] title3: Bitcoin drops 3% to below $115000 on tariff concerns (url3: https://www.economies.com/crypto/news/bitcoin-drops-3-to-below-$115,000-on-tariff-concerns-47011)

[4] title4: Bitcoin (BTC) Price: Falls Below $115K as Trump Tariff Order Triggers Market Sell-Off (url4: https://coincentral.com/bitcoin-btc-price-falls-below-115k-as-trump-tariff-order-triggers-market-sell-off/)

[6] title6: Why Is the Crypto Market Down Today? (url6: https://coingape.com/why-is-the-crypto-market-down-today/)

[8] title8: Trump six months on: where next for markets, tariffs, cryptos and more (url8: https://www.investcentre.co.uk/articles/trump-six-months-where-next-markets-tariffs-cryptos-and-more)

[9] title9: Crypto Market Sinks As U.S.–China Trade Clash Fuels (url9: https://m.fastbull.com/news-detail/crypto-market-sinks-as-uschina-trade-clash-fuels-4337947_0)

[10] title10: Bitcoin News Today: Crypto Stocks Plunge 7%-16% Amid (url10: https://www.ainvest.com/news/bitcoin-news-today-crypto-stocks-plunge-7-16-tariff-fears-weak-payrolls-data-2508/)