Bitcoin Plummets 0.74% to $107,936 as Trump's Trade War Fears Escalate

Global financial markets experienced significant turbulence on Monday as President Donald Trump reignited fears of a global trade war. This development had immediate repercussions in the crypto world, with Bitcoin plummeting below $108,000 amid escalating trade tensions. The tariff threats, which included up to 40% levies on multiple countries, sent shockwaves through global markets, causing Bitcoin to mirror the decline in equities. This behavior underscored the growing perception of Bitcoin as a speculative asset rather than a safe haven during times of geopolitical uncertainty.

Trump's aggressive trade tactics, framed as an extension of his "Liberation Day" agenda, initially targeted Japan and South Korea with warnings of 25% tariffs. The accusations centered on unfair trade practices and transshipping tactics used to evade U.S. duties. The situation escalated further as the White House announced additional tariff plans, including up to 40% on Laos and Myanmar, 30% on South Africa, and 25% on Malaysia and Kazakhstan. Trump also hinted at a 10% levy on any country aligning with BRICS, a clear swipe at Brazil, Russia, India, and China.

These aggressive trade threats, coupled with legal questions surrounding Trump’s invocation of the International Emergency Economic Powers Act (IEEPA), led to a significant drop in risk appetite among investors. Bitcoin, which had been building bullish momentum in recent weeks, was caught in the crossfire. Just days after flirting with an all-time high of $111,814, Bitcoin lost traction, slipping 0.74% to $107,936.08 by Monday afternoon. This decline mirrored the broader market slide, indicating that even the most resilient digital assets are being treated as risk-on plays during times of uncertainty.

Analysts noted a concerning trend: Bitcoin, once heralded as digital gold, is behaving more like a tech stock—sensitive to macroeconomic stress and geopolitical shocks. The synchronous decline in equities and BTC suggests that in times of uncertainty, even the most resilient digital assets are being treated as risk-on plays. This behavior highlights the growing correlation between Bitcoin and traditional risk assets, challenging its status as a safe haven.

Technically, Bitcoin's recent dip appears modest on the surface, but the underlying price action paints a fragile picture. BTC currently trades near $108,000, but multiple bounces from the $107,300 area have formed a cluster of equal lows—a magnet for liquidity sweeps. A decisive break below this level could trigger a cascade of stop-loss orders, potentially dragging Bitcoin into a “fair value gap” between $107,000 and $106,300. In that case, analysts warn of a sharp drop toward $105,000 unless buyers step in swiftly.

On the upside, Bitcoin remains above the 200-day EMA on the one-hour chart, keeping hopes of a bullish reversal alive. A strong recovery from below $107K—especially a clean break above the $109,500 resistance—could invalidate the bearish scenario and pave the way for a rally toward $112,000. However, the road ahead remains unclear. If Trump proceeds with full-scale tariffs on August 1, we could see renewed sell pressure across risk assets—including crypto. But if negotiations yield softer terms, a relief rally may follow.

What’s certain is that Bitcoin’s price is no longer driven purely by crypto-native factors. Macroeconomic policy, international trade dynamics, and media narratives now play a bigger role than ever. In this unpredictable landscape, projects that position their brand proactively—through smart storytelling, strong media targeting, and strategic timing—are far more likely to weather the storm. This highlights the importance of narrative clarity and timely exposure in navigating the volatile crypto market.