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Bitcoin Approaches $115K Amid Tariff Concerns

Bitcoin shows signs of recovery despite major outflows and Trump's new tariffs affecting market sentiment.

August 4, 2025 at 05:03 AM

BTC Nears $115K as Trump Tariffs Sour Bullish Crypto Mood

Concerns over tariffs from Trump and the Fed's position on interest rates have impacted crypto prices.

BTC Approaches $115K as Tariffs Damage Crypto Sentiment

Bitcoin and ether opened the week relatively stable after significant selloffs late last week, attributed to nearly $1 billion in outflows from Bitcoin ETFs and $152 million from ether. Bitcoin fell to around $114,000 but recovered modestly, while ether faced challenges after ending a month-long streak of inflows. The recent imposition of new tariffs by former President Donald Trump across Asia and Europe has further dampened the mood among traders. Jeff Mei, COO at BTSE, pointed out that while fears might be overblown, the market remains cautious, with Bitcoin yet to surpass the critical $118,000 level. Meanwhile, retail favorites like XRP and dogecoin have seen price gains, hinting at some resilience in the market.

Key Takeaways

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Bitcoin ETF outflows amounted to nearly $1 billion over two days.

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Ether experienced a sharp drop in inflows after weeks of recovery.

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Tariffs imposed by Trump are contributing to a cautious market outlook.

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Retail cryptocurrencies like XRP and dogecoin showed notable resilience.

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Institutional involvement is increasing liquidity and mitigating volatility.

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The upcoming economic quarter may lead to more significant market shifts.

"The dip was driven by concerns over Trump’s tariff stance and the Fed’s signal that it’s not keen to cut rates soon."

This quote by Jeff Mei highlights the immediate market reactions to political and economic signals affecting crypto prices.

"The rising presence of professional desks has brought deeper secondary liquidity."

Augustine Fan notes the positive effect of institutional investors in reducing market volatility.

The crypto market is facing significant pressures due to external economic factors, particularly Trump's renewed tariffs and the Federal Reserve's reluctance to cut interest rates. This increased uncertainty may hinder investment confidence. However, the presence of institutional investors appears to provide some stability that was lacking in previous turbulent periods. As the fourth quarter approaches, the market seems poised for further fluctuations as economic developments unfold, suggesting that traders need to be prepared for a possibly volatile season ahead.

Highlights

Bitcoin's price swings reveal the impact of policy on crypto markets.
Institutional investors are changing the game for price stability.
Tariffs and interest rates are weighing heavily on investor confidence.
Retail favorites show resilience despite broader market fears.

Market Impact Due to Political Decisions

Trump's tariffs have created uncertainty in financial markets, leading to cautious trading behavior among investors. This uncertainty may amplify volatility in cryptocurrency prices as traders respond to economic signals.

The interaction between political actions and market responses will be key to watch in the coming weeks.

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bitcoin ethereum tariffs financial markets investment finance cryptocurrency economic policy

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