Bitcoin (BTC) tumbled to $114,250 during early Asian trading on August 1, its lowest level since June 11, following U.S. President Donald Trump's executive order imposing tariffs on multiple nations. The 2.6% daily decline pushed BTC 6.5% below its July 14 all-time high of $122,800, breaking below a three-week range-bound channel with next support near $111,000.
The sell-off coincided with Trump formalizing tariffs – including hiking Canadian duties from 25% to 35% and setting rates between 19%-39% for non-compliant nations like Switzerland and Thailand. Market turmoil saw $110 billion exit crypto markets within 12 hours, while 158,000 traders suffered $630 million in liquidations (mostly long positions) over 24 hours.
Apollo Capital CIO Henrik Andersson attributed the drop to "profit-taking after a strong run amid tariff uncertainty," suggesting a China deal could stabilize markets. LVRG Research's Nick Ruck noted the dip reflected "deadline fear and macroeconomic uncertainty" but viewed it as a temporary correction exacerbated by geopolitical tensions. Despite the slump, Bitcoin recorded its highest monthly close ever at $115,784 in July, though November 2024's $26,000 surge remains the largest monthly candle.