The crypto market experienced a significant jolt this week as renewed global trade tensions sent ripples through risk assets, causing Bitcoin to momentarily cede recent gains. A decisive executive order from U.S. President Donald Trump, reimposing substantial duties on imports from 69 nations—including key Canadian products effective August 1—triggered widespread investor caution and a sharp sell-off across digital currencies.
This sudden macro shift saw traders rush to unwind leveraged positions, exacerbating the downward pressure on Bitcoin in an already constrained liquidity environment. The immediate fallout was visible, with Bitcoin experiencing notable outflows from exchange-traded funds (ETFs), exemplified by ARK21Shares shedding 767 BTC, valued at approximately $88,73 million. This contrasted sharply with Ethereum ETFs, which recorded inflows of over 8,100 ETH, suggesting a nuanced investor sentiment and potential rotation within the crypto landscape.
However, beneath the surface of this tariff-induced volatility, the data reveals a more complex narrative for Bitcoin. Despite the price dip, trading activity remained remarkably high, indicating continued robust institutional and whale participation. A four-year volume distribution chart highlights a significant increase in daily Bitcoin volumes, soaring from $1–2 billion in 2021 to over $6 billion by 2025, with Binance maintaining its dominant market share, followed by Bybit and OKX. This sustained high volume during a price correction can often signal underlying accumulation or strong interest rather than capitulation.
Adding to the bullish undercurrents, Bitcoin’s price action recently formed a classic bull flag pattern. After a sharp ascent from $100,000 to $123,000, the cryptocurrency consolidated within a descending wedge. A recent breakout above this pattern propelled BTC close to $125,000. Noted analyst Javon Marks continues to foresee a potential climb toward $130,000 if this momentum persists. Yet, investors remain wary of historical patterns; August and September have often proved challenging for Bitcoin, with price drops recorded in eight of the past twelve years for these months.
Looking ahead, the cryptocurrency market continues to demonstrate its inherent resilience. While the immediate macroeconomic environment presents headwinds, Bitcoin’s underlying technical strength remains largely intact. The unwavering confidence of long-term holders, further underscored by a recent 306 BTC movement from a 12-year-old inactive wallet, suggests deep conviction in Bitcoin’s future. As markets absorb the initial shock, all eyes will be on whether Bitcoin can defy its seasonal tendencies and decisively break past the $130,000 resistance, setting a new trajectory in the face of evolving global trade dynamics.
Disclaimer: This article is for informational purposes only and should not be taken as financial advice. Always conduct thorough research before making investment decisions.
You might be interested in:
