Bitcoin Plummets Below $115,000: Trump's Tariffs Cause Panic in Crypto Market
Drop to a Three-Week Low
On August 1, 2025, Bitcoin fell below the $115,000 mark, reaching $114,314 on the Binance exchange during the Asian trading session. This is the lowest level since June 11, signaling a significant correction in the cryptocurrency market. According to CoinGlass, over the past 24 hours, $648 million worth of positions have been liquidated, impacting 158,000 traders, mostly holding long positions. The spot cryptocurrency markets lost $110 billion within 12 hours, putting additional pressure on the asset's value.
Trump's Tariff Policy as a Catalyst
The new wave of sell-offs is linked to the order signed by US President Donald Trump on July 31, 2025, which introduced increased trade tariffs. In particular, import tariffs from Canada increased from 25% to 35%, and for countries without trade agreements with the US, such as South Africa, Switzerland, Taiwan, and Thailand, rates vary from 19% to 39%. Agreements with key partners, including the EU, Japan, South Korea, and the UK, also came into effect, causing instability in both stock and cryptocurrency markets. On the morning of August 1, Asian stock markets traded in the red, reflecting on the dynamics of crypto assets.
Market Reaction and Mining
The tariffs could affect cryptocurrency mining, as the increased cost of equipment and electricity imported from affected countries will raise operational expenses for miners. This is particularly relevant for regions dependent on supplies from Asia. Recently, Novosibirsk police discovered an illegal mining farm, highlighting increased control over energy consumption in the industry amid global economic changes. Despite this, market participants consider the current correction temporary, associated with profit-taking after strong growth.
Positive Signals and Prospects
Despite the drop, Bitcoin concluded July with a record monthly candle closing at $115,764, marking one of the best performances in recent years. However, the record from November 2024, when the price rose by $26,000 after Trump's election, remains unbeaten. A positive cryptocurrency report from the White House, published this week, is perceived by the industry as a signal for regulatory easing, which could support a long-term bullish trend. Analysts predict that the support zone at $111,000 could become crucial if the correction continues.
Macroeconomic Risks
The current volatility is associated not only with tariffs but also with geopolitical risks and economic uncertainty in the US. Expectations of a trade agreement with China may reduce tensions, but increased economic confrontation with other countries, such as the EU, raises the likelihood of a global recession. This puts additional pressure on the crypto market, which remains sensitive to macroeconomic factors.
Conclusion
The drop of Bitcoin below $115,000 reflects the market's reaction to the new US tariff policy and macroeconomic instability. However, industry experts remain optimistic, pointing to the strong closing in July and positive signals from the Trump administration. Investors and miners should consider potential cost increases and regulatory changes, but Bitcoin's long-term prospects remain stable, provided trade conflicts ease.