by Good Morning, Asia! In this edition of the Asia Morning Briefing, we explore the latest news impacting the cryptocurrency market, focusing on Bitcoin’s recent price movements and the broader economic factors at play.
Bitcoin’s Current Status
Bitcoin (BTC) is currently trading at $115,300, reflecting a 2.3% decline on the day. This downturn comes as a result of renewed global tariff announcements from the U.S. government, which have had a domino effect on market sentiment across Asia. Major indices such as the Nikkei 225 and Seoul’s KOPSI are also experiencing losses as a result.
The Impact of Tariffs on Cryptocurrency
Historically, Bitcoin and other digital assets have shown a correlation with equity markets, particularly when the White House announces new tariffs. This relationship appears to be weakening, but the immediate impacts are evident. According to CoinGlass data, approximately $260 million in long positions were liquidated within just four hours, highlighting the volatility in the market.
Profit-Taking Trends in Bitcoin
As Bitcoin enters its third major profit-taking wave of the current bull cycle (2023–2025), recent data from CryptoQuant reveals that approximately $6–8 billion in realized gains were recorded in late July. This wave is characterized by significant spikes in the Spent Output Profit Ratio (SOPR), particularly among short-term holders. Notably, an OG whale sold off 80,000 BTC on July 25, which further fueled market sell-offs.
Whale Activity and Market Dynamics
New whale cohorts, specifically those that acquired BTC within the last 155 days, emerged as the primary sellers during this period. Following the significant sell-off by the OG whale, exchange inflows surged to 70,000 BTC in just one day, indicating a strong intent to exit positions at peak prices. This trend is not limited to Bitcoin; Ethereum-based whales holding WBTC, USDT, and USDC also realized substantial profits, amounting to around $40 million in daily gains.
Historical Patterns of Profit-Taking
Historically, profit-taking events have been followed by a consolidation period lasting two to four months before the next upward movement. CryptoQuant suggests that this pattern may repeat itself, especially as U.S. investor appetite begins to dwindle. The Coinbase premium, which tracks price differences between Coinbase and other global exchanges, has recently turned negative, indicating that American buyers are no longer willing to pay a premium for BTC.
Macro Risks and Market Sentiment
The return of macroeconomic risks has added to the cautious tone in the market. Recent tariff escalations, particularly those targeting Canada, have rattled investor confidence across various asset classes, including equities, bonds, and cryptocurrencies. Amid fears of inflation and potential supply chain disruptions, risk-taking among investors remains selective, with market maker Enflux noting that conviction appears light.
Market Movements Overview
Here’s a brief look at the latest market movements:
- Bitcoin (BTC): Trading at $115,500, down 2.3% on the day, influenced by renewed tariff pressures.
- Ethereum (ETH): Hovering around $3,800 after a remarkable 50% surge in July, with bullish projections circulating on social media.
- Gold: Rose to $3,296 before retracting to $3,287.39, as buying interest counteracted a firm U.S. dollar.
- Nikkei 225: Japan’s index opened lower, down 0.65%, reflecting broader market sentiment.
- S&P 500: Futures saw declines as traders reacted to Big Tech earnings and anticipated the upcoming jobs report.
Conclusion
As the cryptocurrency market navigates these turbulent times, investors should remain informed about the underlying economic factors and market dynamics. The interplay between profit-taking, tariff announcements, and macroeconomic risks will likely continue to shape Bitcoin’s price movements in the coming weeks.
For more insights into cryptocurrency trading, including how to buy Bitcoin and other digital assets, explore our guides on How to Buy Bitcoin and How to Buy Cryptocurrency.
Meta Description: Discover the latest market trends as Bitcoin drops to $115K amid profit-taking and tariff tensions. Understand the economic factors influencing cryptocurrency prices in this in-depth analysis.
