U.S. President Donald Trump has reignited the tariff storm, which hindered the rise of U.S. stocks, Asian stocks significantly fell, and the cryptocurrency market could not escape either. After Bitcoin fell below the $118,000 mark early this morning, it has continued to decline to around $115,000.
According to CoinGecko market quotes, as of the writing, the trading price of Bitcoin is $115,427, down 2.5% in the past 24 hours, with a daily low of $114,980; Ethereum fell 4.5% to $3,685; Ripple (XRP) and Solana (SOL) dropped 4.8% and 5.6%, respectively, reported at $2.99 and $170.
CoinGlass data shows that in the past 24 hours, the cryptocurrency derivatives market saw liquidation amount exceeding $630 million, with long positions suffering the most, accounting for nearly 90% of the liquidation amount, over $580 million. Many investors were caught off guard during the short-term correction, with nearly 160,000 traders facing forced liquidation.
CryptoQuant's latest report shows that Bitcoin has just experienced the 'third wave of large-scale profit-taking' in the bull market cycle from 2023 to 2025, with investors cashing out profits amounting to $6 to $8 billion in late July alone.
This wave of profit-taking sell pressure is accompanied by a sharp rise in the SOPR (Spent Output Profit Ratio), particularly concentrated among short-term holders and the 'ancient whale' that sold 80,000 Bitcoins in a single day.
On-chain data also shows that large holders of WBTC (Wrapped Bitcoin), USDT, and USDC on the Ethereum chain cashed out over $40 million in a single day, indicating the broadness of market capital rotation.
CryptoQuant pointed out that in the past, after such large-scale profit-taking sell pressure was relieved, the market typically consolidated for 2 to 4 months before entering a new wave of rising.
Currently, the buying momentum in the U.S. has明显降温, with the 'Coinbase Premium' turning negative, indicating that U.S. investors are no longer willing to pay a premium to purchase cryptocurrencies.
Additionally, overall economic uncertainties have resurfaced, with the new tariff measures promoted by Trump extending to Canada, casting a shadow over global risk assets, including stocks, bonds, and cryptocurrencies, all weakening simultaneously.
Market maker Enflux indicated in the report that, in the absence of structural capital inflows and favorable news, investor sentiment is cautious and willingness to enter the market is weak. They added:
Unless Bitcoin and Ethereum can clearly break through recent local highs, the price trend may still maintain a volatile pattern, driven by capital rotation rather than a clear trend market.
