Bitcoin Drops to $115K as Profit-Taking Intensifies, Tariff Shock Adds to Market Strain
Bitcoin is trading lower in Asia as profit-taking accelerates and macroeconomic pressures mount. A combination of realized gains from recent highs and renewed tariff measures from the U.S. has triggered a cautious turn across risk markets, including digital assets.
BTC Faces Third Major Profit-Taking Wave
Bitcoin (BTC) fell to $115,500 early Friday, down 2.3% on the day, amid heavy selling from newer whale cohorts. According to on-chain analytics firm CryptoQuant, July marked the third significant profit-taking event of the current bull cycle, with $6–8 billion in realized gains logged toward the end of the month.
The sell-off was punctuated by the liquidation of 80,000 BTC from a long-time holder on July 25. That triggered daily exchange inflows of 70,000 BTC—a level often associated with large-scale exits at market tops. Data also showed a rise in selling activity from newer whales, or entities that accumulated coins in the last 155 days.
In parallel, Ethereum-linked whales booked substantial profits in assets like WBTC, USDT, and USDC, with realized gains reaching as high as $40 million in a single day. The broad nature of these exits points to a wider capital rotation as markets reassess risk.
Trump’s Tariff Escalation Rekindles Macro Uncertainty
Markets were further unsettled by a sweeping set of tariffs introduced by former President Donald Trump late Thursday. The updated measures include a 10–15% universal tariff targeting countries with trade surpluses, and additional levies focused on Southeast Asian exporters and Canada.
Asian equities opened in negative territory in response, with Japan’s Nikkei 225 down 0.65% and South Korea’s KOSPI also lower. Bitcoin followed suit, mirroring past behavior where crypto markets react to global macro risks, particularly trade tensions. CoinGlass data shows $260 million in BTC long positions were liquidated in the past four hours alone.
Waning U.S. Demand, Choppy Path Ahead
CryptoQuant analysts suggest that the market could now enter a prolonged consolidation phase, similar to past post-profit-taking periods that have lasted 2–4 months. Signs of weakening demand from U.S. investors are already visible—Coinbase’s premium has turned negative, indicating that domestic buyers are no longer willing to pay above-market prices.
“Risk sentiment has softened across the board,” said market maker Enflux in a note to CoinDesk. “Absent a clear macro catalyst, traders are rotating between assets rather than piling in with conviction. Until BTC or ETH decisively reclaim recent highs, the trend is likely to remain range-bound.”
Market Overview
- Bitcoin (BTC): Trading at $115,500, down 2.3% on the day. Still range-bound despite macro and technical pressure.
- Ethereum (ETH): Holds near $3,800 following a standout 50% gain in July—its strongest monthly performance since 2022. Institutional flows and ETF tailwinds continue to support sentiment.
- Gold: Briefly climbed to $3,296 before easing to $3,287.39. The move came as dip-buying offset headwinds from a strong dollar and stable Fed policy.
- Nikkei 225: Fell 0.65% at open; Topix remained flat amid tariff-driven risk-off sentiment.
- S&P 500 Futures: Down modestly ahead of Friday’s U.S. jobs report and after a mixed Big Tech earnings session.
