Bitcoin temporarily falls below $113,000, with sell pressure in the cryptocurrency market due to Trump's new tariff announcement = CNBC

## Temporary drop below 113,000 Dollar

On the 2nd, the cryptocurrency market experienced a significant decline following President Donald Trump's announcement of reciprocal tariffs and employment statistics data. Bitcoin (BTC) fell by 3% to $112,825, while Ethereum (ETH) and XRP dropped by approximately 7% and 3% respectively.

President Trump announced new tariffs ranging from 10% to 41% on dozens of countries on the 1st, leading to a risk-off investment sentiment. Concerns about inflation and the Federal Reserve's ability to cut interest rates are accelerating capital outflows from speculative assets.

In addition, the U.S. Department of Labor significantly revised down the number of jobs added outside the agricultural sector, which is sensitive to economic conditions, in the employment statistics released on the night of August 1. President Trump criticized the employment data as a "serious error" and was reported to have ordered the immediate dismissal of the head of the department.

Analyst Analysis

According to a report by CNBC, Ben Carrland, CEO of the cryptocurrency research platform DYOR, analyzed it as "a healthy strategic cooldown after the surge in July." He stated, "The market is not reacting to a crisis, but rather to the absence of a crisis," evaluating it as a temporary stagnation in calculated trading.

Additionally, according to the price analysis of Bitcoin Vector, Bitcoin is testing the support line at $114,000. The risk oscillator has been flat (risk-off) for several weeks, indicating that the low-risk situation has continued for 100 days since May.

Additionally, it is pointed out that the stability of the risk oscillator is key, citing the case where Bitcoin recorded a historical increase of more than four times while maintaining a risk-off signal of zero for 197 days from October 2020 to April 2021. Currently, it has reached half of that period and is in a stage of waiting for momentum to reignite unless there is a shift to a high-risk area.

Furthermore, Matrixport pointed out last week that Bitcoin reached a resistance of 122,000 Dollar and predicted a summer market stagnation.

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