- Bitcoin gained 1.5% in 24 hours but declined 4% over the week, trading between US$114,280-$119,290 alongside similar patterns in Ethereum and altcoins.
- Market volatility stemmed from renewed dollar strength following President Trump’s announcement of new global tariffs based on trade surpluses.
- The weekend price drop liquidated US$195 million in long positions, with over 40,000 BTC sent to exchanges at a loss on 1st August alone.
- Analysts cite fading euphoria and institutional caution as Bitcoin struggles to break higher amid emerging inflation concerns from tariff policies.
Bitcoin is up 1.5% over the past 24 hours but down 4% over the past week. The OG crypto reached as high as US$119,290 (AU$184,055) and fell to US$114,280 (AU$176,325) at the time of writing.
Ethereum (ETH) and other altcoins followed a similar pattern, with the second-largest cryptocurrency currently trading at US$3,530 (AU$5,445).
The volatility followed renewed dollar strength after US President Trump’s announcement of new tariffs, which shook global markets.
Robin Brooks of the Brookings Institution wrote on X that tariff-driven inflation is finally materialising, pushing the US dollar higher.
There’s all kinds of reasons people give why the Dollar has fallen this year. At the root of all that stuff is a simple macro story: tariffs were supposed to lift inflation, and that just didn’t happen as fast as people expected. Well, it’s happening now. Inflation is coming.
Robin Brooks, Brookings InstitutionFollowing Trump’s announcement of sweeping global tariffs – including a 10–15% rate based on trade surpluses – fresh data shows early signs of inflation creeping into the Fed’s core PCE measure, reinforcing the market’s inflation concerns.
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Long Positions Liquidated as Holders “Bleed BTC”
The initial price drop over the weekend saw US$195 million (AU$300.1 million) in long positions liquidated, as CryptoQuant analysts explained.
According to CryptoQuant analyst J.A. Maartunn, short-term Bitcoin holders are “bleeding BTC” as prices dip, triggering heavy selling. On 1 August, over 40,000 BTC were sent to exchanges at a loss – the highest level in more than two weeks – signalling widespread capitulation among both whales and newer investors.
Linh Tran, a market analyst at XS.com, said that “the price action reflects a fading sense of euphoria and a partial retreat of speculative capital”, and that “Bitcoin has struggled to break higher largely due to rising caution from institutional investors.”
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