Bitcoin took a nosedive today, sliding to a three-week low of around $114,000, as the financial world reeled from the latest executive order on tariffs by former U.S. President Donald Trump. The move, designed to bolster national industries, instead sent shockwaves through various markets, leaving both stock and crypto investors grappling with heightened uncertainty.
A Ripple Effect Across Markets
The tariff order, ostensibly aimed at shielding American businesses, seems to have rattled more than reassured. Stocks wobbled, and the crypto market—often touted as a hedge against traditional financial upheavals—wasn’t spared either. Bitcoin, the flagship cryptocurrency, felt the tremors acutely, shedding significant value in a matter of hours. This decline mirrors recent trends highlighted in Asia Morning Briefing: Bitcoin Drops to $115K as Third Major Profit-Taking, New Tariff Tensions Add Pressure, where similar market pressures were observed.
“Investors are showing a flight-to-safety mentality,” noted Clara Jenkins, a crypto analyst at New Wave Investments. “When geopolitical tensions rise, we see this knee-jerk reaction where even assets like Bitcoin, which are usually viewed as safe havens, aren’t immune to the fallout.”
The Broader Picture: An Unsettling Precedent
The impact of Trump’s order isn’t just a blip on the radar; it’s part of a wider narrative of economic anxiety that has persisted throughout 2025. Earlier this year, similar policy moves had already put investors on edge, with many still recovering from the volatility induced by global trade disputes and fluctuating regulatory landscapes.
Bitcoin’s dip below the psychologically significant $115,000 mark raises questions about its role in these turbulent times. While some view the asset as a digital gold, offering refuge from fiat currency woes, others argue its volatility makes it a risky bet when traditional markets are in flux. This sentiment was echoed recently in Bitcoin Tumbles Below $116K as Jerome Powell Delivers Hawkish Remarks, where the cryptocurrency’s vulnerability to economic policy was further scrutinized.
“Cryptocurrencies haven’t yet matured to the point where they can fully detach from broader market influences,” remarked Ethan Rivera, a blockchain analyst with TechSphere Insights. “The idea that Bitcoin can completely insulate investors from economic policy shocks is, frankly, a bit of a misnomer.”
An Uncertain Path Forward
Looking ahead, the path for Bitcoin and other digital currencies remains shrouded in uncertainty. The crypto world has always thrived on unpredictability, but recent moves by global economic powers are adding layers of complexity that even seasoned investors find challenging to navigate.
With the U.S. presidential elections looming in November, market watchers are bracing for more turbulence. The outcome could shape the trajectory of economic policies and, by extension, influence the crypto landscape.
Despite the current dip, some industry insiders remain optimistic about Bitcoin’s long-term prospects. “We’re in a phase of growing pains,” said Mia Thompson, a crypto strategist at Blockchain Horizons. “The asset class is still finding its footing, but the underlying technology and its potential for disruption remain as compelling as ever.”
The situation underscores an intriguing dichotomy: while Bitcoin’s roots lie in decentralization and independence from traditional systems, its immediate fate seems inextricably linked to the whims of global politics and policy shifts. The coming months will be pivotal in determining whether the cryptocurrency can reclaim its role as a steadfast store of value or if it will continue to sway with the winds of economic change.
Source
This article is based on: Bitcoin dips below $115K as Trump tariff order fails to comfort investors
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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.
