- Bitcoin dropped after Trump’s new tariffs spooked investors, leading to panic selling and the closing of risky trading positions.
- Even with the price falling, trading activity stayed high, showing big investors are still very active in the market.
- Bitcoin’s chart shows signs it could still rise to $130K, but history says August may bring more price drops.
The crypto market faced sharp selling pressure on Friday, triggered by rising global trade tensions and sudden risk aversion across assets. U.S. President Donald Trump reignited tariff fears by signing a new executive order that reimposes heavy duties on imports from 69 nations. This includes steep levies on selected Canadian products, effective from August 1.
The market’s reaction was swift and unfavorable. Recent gains in Bitcoin and other major cryptocurrencies were obliterated by the widespread crypto slump. In the face of already limited liquidity, traders hurried to get out of leveraged positions, which accelerated the slide.
The sudden market shift signals rising macroeconomic stress. Investors pulled back from cryptocurrencies due to its volatility. Traders also braced for further volatility. Bitcoin saw outflows from ETFs, with ARK21Shares alone shedding 767 BTC, equivalent to $88.73 million. Meanwhile, Ethereum ETFs witnessed inflows of over 8,100 ETH, reflecting mixed investor sentiment.
Tariff Shock Meets Volume Spike and Technical Pressure
Besides the tariff news, Bitcoin volumes told their own story. A four-year volume distribution chart showed exchange activity changing rapidly. Daily Bitcoin volumes soared from $1–2 billion in 2021 to over $6 billion by 2025. Binance retained the biggest market share, followed by Bybit and OKX.
Source: Daan Crypto Trades
Additionally, Bitcoin’s price action formed a clear bull flag pattern. Prices climbed from $100,000 to $123,000 sharply, then consolidated in a descending wedge. A breakout above that wedge recently pushed BTC near $125,000.
Analyst Javon Marks, still sees potential upside toward $130,000 if momentum holds. However, historical data shows that August and September often bring weakness. Bitcoin fell during these months in eight of the past twelve years.
What Comes Next?
The cryptocurrency market exhibits tenacity in the face of challenges. Technically, Bitcoin is still in a positive position, but there is a threat from macro. Long-term holders’ confidence is further demonstrated by the recent 306 BTC movement in a 12-year-old inactive wallet.
As a result, even if there may be some short-term volatility, after markets settle, everyone will likely be watching for the next breakout prospect. Investors are currently waiting to see if Bitcoin can overcome seasonal patterns and rise above $130,000 once more.
