US tariff shock sends Bitcoin below $115K as renewed U.S. trade levies triggered widespread profit taking across crypto markets. Bitcoin fell roughly 6–7% to as low as $114,800, while Ethereum, Solana and Dogecoin all declined sharply amid macroeconomic jitters. This single-topic analysis explores the causes, market response, expert insight, and what it means for investors.
On August 1, 2025, the White House announced fresh global baseline tariffs—10% on key imports and a steep 35% levy on Canadian goods. This sparked investor anxiety and spooked risk assets across equity and crypto markets.
Bitcoin’s decline to $114,832 represented over a 6% drop from its mid‑July peak above $122K. Ethereum lost 2.5%, Solana fell nearly 9.5%, and Dogecoin declined up to 8%—reflecting a broad-based crypto correction.
Data shows over $600M in leveraged long positions were liquidated within 24 hours as prices tumbled and stop-losses triggered. Retail traders rushed to book profits after Bitcoin’s sustained gains in July.
Experts identify Bitcoin’s $115K level as critical support. Analysts from Giottus and 9Point Capital stress that as long as it holds, the bullish “buy‑the‑dip” narrative remains intact.
Options markets echoed resilience: a put‑call ratio of 0.65 and call option accumulation between $116K–$120K suggest traders retain optimism above current price ranges.
Why Crypto Tumbles with Tariff News
Crypto markets, like equities, react to policy uncertainty and trade friction. Tariffs raise fears of a global economic slowdown, prompting capital to shift into safer assets like bonds.
The sudden dollar strength following tariff announcements also weighed on crypto, already under pressure from global rate concerns and profit booking in late July.
Bernstein, via Richard Bernstein Advisors, reaffirmed that the broader crypto bull cycle remains in early stages, supported by institutional demand and growing retail activity. The firm urged patience amid volatility.
Further, the Daily Binance KOL Insight noted that Bitcoin continued trading range‑bound, consolidating between $117K–$119.8K before today’s downturn—reflecting mounting tension in markets already digesting macro signals.
Related: DOGE Drops 8% Amid Heavy Sell‑Off, But Institutions Quietly Accumulate at $0.21
What This Means for Investors
Short‑term: expect volatile swings if trade rhetoric intensifies or additional policy shocks emerge. Traders should heed technical support zones like $115K and Ethereum’s ~$3,700 level.
Mid‑term: institutional accumulation and ETF inflows remain intact. Tether’s robust Q2 profits and spot ETF data point to structural demand, not speculative euphoria.
Long‑term: if underlying bullish themes hold—regulatory clarity, ETF expansion, institutional adoption—the correction presents entry opportunities in major crypto assets.
The US tariff triggered a swift crypto market sell‑off. While sentiment turned risk‑off in response to trade policy, both technical and macro signals suggest the broader bull cycle remains intact. Intelligent investors may yet find opportunity in the dip—if key support levels hold.
