Bitcoin is once again nearing the crucial psychological mark of $108,000 after briefly touching $109,000 earlier today. The former U.S. President Donald Trump’s refusal to extend the new trade deadline set for August 1 seems to be fueling the fresh surge and accelerating momentum.
Market participants appear to be responding to increased geopolitical uncertainty, with investors viewing Bitcoin as a likely hedge. The $108,000 mark has acted as both support and resistance in the past few weeks.
This retest is certainly a pivotal moment for traders looking for clues to BTC’s short-term trend—whether another rapid drop and reversal will follow, or if a breakthrough will occur.
BTC Price Drops Below $109k As Trump Issues Warning
Bitcoin is now trading at around \$108,400 after reaching an intraday high of \$109,198. The drop is attributed to former U.S President Donald Trump’s announcement regarding reciprocal tariffs that are set to take effect on August 1.
Trump conveyed via his Truth Social platform that 14 nations including Japan and South Korea will be sent letters confirming no extensions on payment due dates. To Trump’s credit, the payments will be due starting August 1.
With the news as shared by CoinGape, Bitcoin’s price also dropped below the valuable \$108,000 support level. While Bitcoin did experience a short-term rise earlier today as some traders shifted past their fears of the trade war, the persistent volatility predicted due to Trump’s beliefs is unlikely to help stabilize the Bitcoin price anytime soon.
Developments are being actively watched and tracked since the uncertainty surrounding U.S. trade policies can reshape global trade market dynamics and investor confidence. For the time being, the \$108,000 remains a crucial psychological mark for Bitcoin from which it can be supported amidst the approaching deadline for tariff implementation.
Conclusion
In conclusion, the recent decline in Bitcoin’s price seems indicative of increasing investor concerns because of growing geopolitical tensions. The confirmation from Trump that reciprocal tariffs will kick in on August 1st—with no extensions allowed—has worsened the already frail global market fueling fears of a looming trade war.
This caused Bitcoin to dip under its critical support level of \$108,000, although it managed to recover briefly after. With less than a month to go, traders will have to prepare for sharp price swings.
The market’s next move, in all probability, will be dictated by subsequent developments regarding the tariffs and the economy’s comprehensive signals that could shape the coming weeks for Bitcoin’s price trajectory.
