Bitcoin once fell to 114,000, and the entire network liquidated over 600 million magnesium
Bitcoin ($BTC) fell this morning, dropping from a 24-hour high of $118,922 to $114,313. It currently sits at $115,318, a drop of 2.34%. Ether ($ETH) also fell, currently trading at $3,686, a drop of 4.01%.
CoinGlass liquidation data shows that in the last 24 hours, a total of 158,629 people were liquidated in the global cryptocurrency perpetual contract market, with a total liquidation amount of US$631.79 million. Of this, long positions (buy orders) accounted for US$570 million in liquidations, making up the majority of the total liquidation volume.
Source: CoinGlass Bitcoin once fell to 114,000, and the entire network liquidated over 600 million magnesium
Why Bitcoin Falls? Trump Tariff Announcement, PCE Inflation Expectations
Bitcoin fell in early trading, mainly due to multiple negative factors.
According to Reuters, US President Trump signed an executive order to impose new tariffs on dozens of trading partner countries, including 20% for Taiwan, 25% for India, 19% for Thailand, and 15% for South Korea. However, the tariffs on China are still under negotiation. The new tariffs will take effect at 12:01 noon Taiwan time on August 8.
Further reading:
Taiwan's tariffs are released! Lai Ching-te: 20% is only temporary, is there room for negotiation and reduction? Click here to see the US global equivalent tariff rates.
Asian stock markets fell across the board in early trading following the tariff news. The MSCI Asia Pacific Index fell 0.4%, bringing its weekly loss to 1.5%. South Korea's KOSPI plummeted 1.6%, while the Nikkei also fell 0.6%.
The Taiwan stock market fell more than 300 points at the opening, and the New Taiwan dollar rose above 30 yuan against the US dollar, setting a new intraday low in more than two months.
According to Yahoo Finance, the US Federal Reserve's Personal Consumption Expenditures (PCE) index was released last night. The annual growth rate of PCE in June was 2.6%, higher than 2.4% in May and higher than the 2.5% forecast by economists.
The core PCE annual growth rate reached 2.8%, higher than the 2.7% expected by economists and consistent with the data in May. There are concerns that there may be signs that tariffs are starting to push up prices.
As risk aversion in the market intensified, investors sold off risky assets, with cryptocurrencies bearing the brunt.
In addition, the US Federal Reserve kept interest rates unchanged this week, and coupled with the rebound in inflation data, the probability of a rate cut in September dropped sharply from 65% to 41.3%. The US dollar index rose 2.4% to 100 this week, hitting a nearly two-month high, further suppressing Bitcoin's performance.
Source: FedWatch The US Federal Reserve kept interest rates unchanged this week, and with inflation data rebounding, the probability of a September rate cut has dropped sharply from 65% to 41.3%.
Analysts warn: Bitcoin may fall to 106,000
Analysts at 10x Research warn that Bitcoin is facing seasonal headwinds.
From a historical perspective, August is usually the weakest month for Bitcoin. In the past decade, only three years saw an overall increase, while the remaining years saw declines of around 5%-20%.
Markus Thielen, co-founder of 10x Research, said:
"Despite billions of dollars in corporate inflows, the actual price impact has been surprisingly muted, raising the possibility that even with continued support, the market may not deliver the gains many expect."
The agency predicts that Bitcoin may fall below $117,000, with support at $112,000 and a deeper bottom area at $106,000-110,000.
However, the report also mentioned that the few months with three increases in August over the years were 2013, 2017 and 2021, which happened to be the year after the Bitcoin halving. 2025 also happens to be the year after the fourth halving in 2024, so there may still be hope for an increase.
Source: 10x Research From a historical perspective, August is usually the weakest month for Bitcoin.
The market's focus is now shifting to the U.S. employment data to be released on Friday. It is expected that non-farm payrolls will increase by 110,000 in July, and the unemployment rate may rise from 4.1% to 4.2%. This is also one of the key indicators for the Federal Reserve to decide whether to cut interest rates in September.
"600 million magnesium liquidation! Bitcoin plummets to 114,000. Why the 4,000-point drop? Analysts warn of further decline." This article was originally published on Crypto City.
