Bitcoin has experienced a decline of 2.3%, falling to approximately $115,300. This downturn is attributed to a significant wave of profit-taking and renewed tariff tensions from the U.S.
Bitcoin Faces Profit-Taking Wave and Tariff Tensions
Bitcoin (BTC) has dropped 2.3% to around $115,300 under the pressure of a major third wave of profit-taking and new American tariffs. Recent reports indicate that realized gains between $6 to $8 billion were recorded at the end of July, coinciding with an event where an early investor, dubbed an “OG whale,” sold 80,000 BTC on July 25.
Renewed tariff tensions, including measures targeting Canada, have rattled broader risk assets, including cryptocurrencies. Bitcoin is ending the trading week in Asia on a weaker note, trading above the $115,300 mark.
Market analysis from CryptoQuant reveals that Bitcoin has just undergone its third major wave of profit-taking within the current bullish cycle spanning from 2023 to 2025. This wave has been characterized by substantial spikes in the spent output profit ratio (SOPR), a metric that indicates whether sold coins are realizing profits or losses. This trend has been particularly noticeable among short-term holders.
The sell-off intensified with the aforementioned “OG whale” dumping 80,000 BTC, highlighting a profitable exit strategy from many investors as exchange inflows surged to 70,000 BTC in one day following this sale.
Additionally, Ethereum whales holding assets like Wrapped Bitcoin (WBTC), Tether (USDT), and USD Coin (USDC) have also recorded up to $40 million in daily profits, underscoring a broader trend of capital rotation away from certain positions.
Historically, significant profit-taking events have often been followed by a market consolidation period lasting two to four months before the next upward surge. This trend could persist, especially as American investors’ appetite appears to be waning. The Coinbase premium, an important indicator reflecting price differences between Coinbase and other global exchanges, has recently turned negative. This indicates that U.S. buyers are no longer willing to pay a premium for Bitcoin, indicating a cooling demand in this critical market.
Resurgence of Tariff Risks Amplifies Market Pressures
Adding to the cautious sentiment in domestic markets is the resurgence of macroeconomic risks. A new series of global tariffs from the White House has pulled Asian markets lower, with Japan’s Nikkei 225 and South Korea’s KOSPI both opening in the red.
Bitcoin is not immune to these pressures. Traditionally, digital assets tend to follow stock markets downward when new tariffs are announced, and while this correlation has shown signs of weakening, it has not disappeared entirely. President Trump’s latest tariff escalation, which includes specific measures targeting Canada, has shaken broader risk assets, with stocks, bonds, and cryptocurrencies all experiencing declines amid fears of an inflation resurgence and new supply chain disruptions.
In the absence of a clear new macroeconomic catalyst or a resurgence of strong structural flows, risk-taking in the cryptocurrency market is expected to remain selective and characterized by a lack of conviction. Market maker Enflux echoed this sentiment in a note to CoinDesk, stating, “Until BTC or ETH can show a net recovery from recent local peaks, price action could remain choppy, and thematic rotation rather than trend-focused trading may be on the horizon.”
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