Bitcoin has fallen to its lowest level in three weeks as US President Donald Trump released an executive order imposing trade tariffs on a raft of countries.
Bitcoin (BTC) fell to $114,250 on Coinbase during early trading in Asia on Friday, according to TradingView. It hasn’t been that low since June 11.
The original cryptocurrency has now broken below its three-week range-bound channel, and the next support zone lies at around $111,000 if there is no rebound. Today’s 2.6% decline takes the asset around 6.5% below its all-time high of $122,800, which came on July 14.
Bitcoin had already been falling in the lead-up to the tariff decision deadline, with $110 billion having exited spot crypto markets over the past 12 hours.
A total of 158,000 traders were liquidated to the tune of $630 million over the past 24 hours, according to CoinGlass. Most of these were long positions.
The crypto market dip comes in the same week that the White House issued a crypto policy report widely considered bullish for the industry.
Trump imposes trade tariffs
President Trump late on Thursday formalized an array of high tariffs and trade deals he’s announced in recent weeks, including hiking tariffs on Canada from 25% to 35%.
The executive order, which came before a self-imposed deadline for trade deals, also set rates for countries that did not reach agreements with him, such as South Africa, Switzerland, Taiwan and Thailand, which are facing tariffs between 19% and 39%.
Agreements with prominent trading partners such as the European Union, Japan, South Korea and the United Kingdom were also made official.
Stock markets across Asia traded lower on Friday morning, along with crypto markets.
China deal could ease tensions
“Combined with the uncertainty over tariffs, it is natural to see some profit taking after a very strong run both in equities and crypto markets,” Apollo Capital’s chief investment officer, Henrik Andersson, told Cointelegraph, adding:
“If a deal with China can be made, it would remove a lot of the current uncertainty in our opinion.”
“This week’s market dip reflects a mix of tariff deadline fear and broader macroeconomic uncertainty, with Trump’s new plans amplifying volatility,” Nick Ruck, director at LVRG Research, told Cointelegraph.
However, some investors viewed the sell-off as a “temporary correction rather than a structural shift,” he said before adding:
“While tariffs contributed to the pullback, the dump was likely exacerbated by profit-taking after recent ATHs, lingering geopolitical tensions, and US macro uncertainty.”
Highest monthly candle closes
Despite the relatively minor Bitcoin dip, the asset posted its highest-ever monthly candle in July. It hit an all-time high and closed the month at $115,784, according to TradingView.
It was not the largest monthly candle, however. That was last November, when the asset surged by $26,000 in just one month following the election of Donald Trump in the US.