Traders Liquidated Amid Crypto and Equity Market Declines Triggered by Renewed Trade Tensions
Bitcoin (BTC) dropped to its lowest level in three weeks on Friday, falling to $114,250 on Coinbase, as U.S. President Donald Trump signed an executive order imposing a broad range of trade tariffs on multiple countries. The move rattled both crypto and traditional financial markets, triggering widespread liquidations and risk-off sentiment.
According to TradingView, this marks Bitcoin’s lowest price since June 11, officially breaking below its three-week trading range. Analysts warn that if the decline continues, the next key support zone lies around $111,000.
The decline saw Bitcoin shed 2.6% in daily losses and pushed it approximately 6.5% below its all-time high of $122,800 recorded on July 14.
Massive Liquidations Follow Sell-Off
The market pullback was accompanied by a wave of forced liquidations. Data from CoinGlass shows that 158,000 traders were liquidated over the past 24 hours, totaling $630 million in losses—mostly from long positions.
Additionally, over $110 billion exited spot crypto markets within just 12 hours leading up to the tariff announcement, reflecting deepening investor caution.
Tariff Order Amplifies Volatility
President Trump’s executive order, released late Thursday, confirmed several tariff measures he had previously hinted at in recent weeks. These include:
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Raising tariffs on Canadian goods from 25% to 35%
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Imposing new tariffs ranging from 19% to 39% on imports from South Africa, Switzerland, Taiwan, and Thailand
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Finalizing trade agreements with major partners, including the European Union, Japan, South Korea, and the United Kingdom
Asian stock markets opened lower on Friday in response to the escalating trade tensions, mirroring the decline seen across the cryptocurrency sector.
Analysts: Tariff Fears and Profit-Taking Drive Pullback
Henrik Andersson, Chief Investment Officer at Apollo Capital, told Cointelegraph that the combination of renewed tariff uncertainty and profit-taking is behind this week’s sell-off.
“It is natural to see some profit taking after a very strong run both in equities and crypto markets,” Andersson said. “If a deal with China can be made, it would remove a lot of the current uncertainty.”
Nick Ruck, Director at LVRG Research, echoed that view, noting that the decline may not reflect a long-term trend.
“This week’s market dip reflects a mix of tariff deadline fears and broader macroeconomic uncertainty, with Trump’s new plans amplifying volatility,” Ruck explained.
“While tariffs contributed to the pullback, the dump was likely exacerbated by profit-taking after recent all-time highs, lingering geopolitical tensions, and U.S. macro uncertainty.”
Policy Report Overlooked Amid Sell-Off
Ironically, the sell-off comes in the same week that the White House released a crypto policy report widely considered bullish for the digital asset industry. The report laid out regulatory frameworks that many analysts viewed as constructive for long-term institutional adoption.
Still, the tariff announcement appeared to overshadow any positive momentum from that development.
July Closes with Record Monthly Candle
Despite the dip, Bitcoin closed July with its highest-ever monthly candle, finishing the month at $115,784. The asset hit a new all-time high during the month but failed to hold those gains as market conditions shifted.
However, it was not the largest monthly gain on record. That title still belongs to November 2024, when Bitcoin surged by $26,000 in the wake of Trump’s election win.
Outlook: Key Levels and Sentiment
With prices now sitting near the lower end of recent support, traders and analysts are watching closely for signs of a rebound or further downside. A break below the $111,000 level could trigger a deeper correction, particularly if macro conditions deteriorate further.
However, many still view the current dip as a healthy correction in the context of Bitcoin’s strong year-to-date performance, especially following 156% growth since January and rising institutional adoption after the SEC’s approval of spot Bitcoin ETFs.
For now, market sentiment remains mixed as investors weigh Trump’s aggressive trade stance against the broader backdrop of pro-crypto policy signals and growing demand for Bitcoin as a long-term strategic asset.
