Bitcoin has stumbled to $115,300, shedding 2.3% amid a turbulent trading week in Asia, as the ramifications of newly announced U.S. tariffs ripple across global markets. The cryptocurrency, often seen as a hedge against traditional market volatility, finds itself caught in the crossfire of geopolitical tensions and profit-taking maneuvers by major holders.
Tariffs and Tumult: A Complex Web
The latest salvo of tariffs from the White House, targeting a wide swath of imports, has sent shockwaves through financial markets, with the Nikkei 225 and Seoul’s KOSPI opening in the red. Bitcoin, which often mirrors traditional equity markets during periods of macroeconomic uncertainty, wasn’t spared. According to CoinGlass, a staggering $260 million in long positions were liquidated in just four hours, highlighting the volatility that investors are grappling with. This mirrors a broader trend of liquidations, as detailed in our recent coverage of $600M bullish bets being liquidated.
“These tariffs are hitting markets hard, and Bitcoin is no exception,” notes Alex Kim, a market strategist at Enflux. “We’ve seen before how digital assets react to such macroeconomic shocks, though the correlation seems to be weakening over time.”
Profit-Taking: The Third Wave
Bitcoin’s recent dip is not only a product of external pressures but also a result of internal market dynamics. CryptoQuant’s latest report unveils the third significant profit-taking wave since the bull cycle began in 2023, with a massive $6–8 billion in realized gains recorded as July drew to a close. This wave, characterized by a sharp uptick in the Spent Output Profit Ratio (SOPR), was primarily driven by short-term holders and a substantial 80,000 BTC offload by a veteran “OG” whale on July 25.
Interestingly, it wasn’t just Bitcoin feeling the heat. Ethereum-based whales, juggling Wrapped Bitcoin (WBTC), USDT, and USDC, also pocketed up to $40 million in daily profits, pointing to a broader trend of capital rotation within the crypto ecosystem.
“Profit-taking is a natural part of the cycle,” explains Lily Tran, a crypto analyst at CryptoQuant. “But the scale of these moves can certainly add pressure, especially when compounded by external factors like tariffs.”
Consolidation on the Horizon?
Historically, these major profit-taking events have been harbingers of a consolidation phase, lasting two to four months. This pattern seems poised to repeat itself, especially with waning U.S. investor appetite. The Coinbase premium, which indicates the price difference between Coinbase and other global exchanges, recently turned negative—suggesting American buyers are no longer willing to pay extra for Bitcoin. For further insights on potential price drops, see our analysis of Bitcoin sliding below $117.5K.
“The market’s in a holding pattern,” observes Tran. “Without a strong macro catalyst or fresh inflows, we’re likely to see more choppy, range-bound action rather than a decisive trend.”
Adding to the mix is the revival of macroeconomic risks. The Trump administration’s tariff escalation, particularly targeting Canada, has unsettled risk assets across the board. It’s a situation that’s left traders and analysts alike pondering the sustainability of current market trends.
“Until Bitcoin or Ethereum can cleanly reclaim recent highs, expect more of the same—choppiness and thematic rotation,” Enflux noted in their latest market update.
Looking Ahead: Uncertainty Reigns
As August unfolds, the cryptocurrency market stands at a crossroads. The interplay of profit-taking, tariff tensions, and macroeconomic uncertainty creates a landscape that’s anything but predictable. Investors and market watchers will be keenly observing any shifts in sentiment or policy that could tip the scales.
Will Bitcoin break out of its current range? Can Ethereum maintain its bullish momentum? These questions linger as the crypto community braces for what promises to be a pivotal month.
In a world where certainty is a rare commodity, one thing’s for sure: the coming weeks will be anything but dull.
Source
This article is based on: Asia Morning Briefing: Bitcoin Drops to $115K as Third Major Profit-Taking, New Tariff Tensions Add Pressure
Further Reading
Deepen your understanding with these related articles:
- Bitcoin profit taking sets traders’ buy target at $113K: Will a rally to new highs follow?
- FOMC Report Causes Bitcoin Dip: Will Sell-Side Pressure Drag Prices Lower?
- Billions in Bitcoin Sold on Exchanges as Liquidations Top $500 Million
Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
