Bitcoin Price Falls to $114,800 as US Tariff Shock Triggers Crypto Market Reset
Bitcoin Falls After US Tariffs – But Maybe It’s Not That Bad
The crypto market got a heavy shake this week as Bitcoin slipped to around $114,800, reacting to the sudden US tariff announcement on Chinese goods. Many traders panicked, a few booked profits, and the whole market saw quick red candles.
Meanwhile, Ethereum managed to stay steady near $4,100, showing that not everyone’s running away from crypto yet. Some experts are even calling this drop a healthy market reset, not a complete meltdown.
What Exactly Happened?
Last week, Bitcoin was flying high, almost touching $121,000, before the new tariffs crashed the party. US President Donald Trump’s decision to impose 100% tariffs on Chinese imports made global investors nervous, and crypto — being the most volatile asset class — felt it the hardest.
Here’s a quick look at how things moved in the market:
- Bitcoin (BTC): Dropped to $114,800 (~₹1.01 crore)
- Ethereum (ETH): Stayed near $4,100 (~₹3.63 lakh)
- XRP: Down to $2.56 (~₹227)
- Solana (SOL): Fell to $195 (~₹17,300)
- Dogecoin (DOGE): Slipped to $0.20 (~₹18)**
But interestingly, Binance Coin (BNB) didn’t fall much. It stayed firm around $1,294, showing some real market strength.
Why Did Bitcoin Fall So Suddenly?
There wasn’t just one reason. The drop came from a mix of factors that hit the market at once.
- Profit Booking: Traders who bought early took profits after Bitcoin’s rally.
- Liquidations: High-leverage traders got hit as prices fell, causing forced selling.
- Global Fear: US-China trade tension made investors pull back from risky assets.
According to CoinSwitch Markets Desk, this fall isn’t really a trend reversal.
“It’s more like short-term profit booking. Investors are buying back the dip instead of panicking,” they said.
Experts Think It’s Just a Pause
Avinash Shekhar, Co-founder and CEO of Pi42, said the market is recalibrating.
“This drop looks like a natural pause after weeks of gains. The exaggerated panic is cooling down now,” he told media.
Mudrex CEO Edul Patel also pointed out that more than $259 million worth of short positions were liquidated, which actually helped the market bounce. He believes that if the US Federal Reserve signals possible rate cuts, Bitcoin might soon move up again.
The CoinDCX Research Team added that altcoins are consolidating, but some like Dash, Bittensor, and Mantle saw solid gains of over 25–50%.
How This Fall Compares With Past Bitcoin Crashes
| Event | BTC Price Low | Trigger | Recovery Time |
|---|---|---|---|
| China Ban (2021) | $29,000 | Regulatory crackdown | 3 months |
| Terra-LUNA Crash (2022) | $19,000 | Stablecoin collapse | 4 months |
| FTX Collapse (2022) | $16,500 | Exchange failure | 2 months |
| US Tariff Shock (2025) | $114,800 | Trade war fears | Still ongoing |
So if we compare, the current fall isn’t as severe as those historic ones. The market looks a lot stronger this time.
Pros and Cons of the Current Bitcoin Correction
Pros ✅
- Market cooling off after heavy rallies
- Good entry point for new investors
- On-chain data still positive
Cons ❌
- Volatility might continue for a bit
- Uncertainty around US-China situation
- Leveraged traders facing risks
What’s Next for Bitcoin and Ethereum?
If trade tensions calm down, analysts expect Bitcoin to retest $120,000 and Ethereum to possibly reach $4,500 soon. Much depends on what Federal Reserve Chair Jerome Powell says in his upcoming speech about interest rates.
If the Fed takes a softer tone, it could send crypto prices rising again. But if inflation talk dominates, there might be another small dip before the next rally.
Investor Takeaway: Buy the Dip or Wait?
Even with the recent fall, Bitcoin is still up over 70% this year, which is pretty solid. Most long-term holders see dips like these as a buying opportunity, not a warning sign.
The fundamentals haven’t changed much. Institutional interest, ETF flows, and strong on-chain metrics still support the idea that Bitcoin’s long-term path remains upward.
FAQs: Bitcoin Price Fall Explained
1. Why did Bitcoin fall this week?
Mainly because of US tariffs on Chinese goods, which created panic and led to profit booking across the market.
2. Will Bitcoin drop further?
Hard to say for sure, but analysts think this is a temporary correction, not a trend reversal.
3. Is it smart to buy Bitcoin now?
If you’re investing for the long term and can handle short-term volatility, yes. But always do your own research.
4. How are altcoins reacting?
Altcoins like BNB and Solana are holding better, while smaller tokens are mostly consolidating.
5. When will Bitcoin recover?
If global tensions ease and the Fed hints at rate cuts, recovery could start soon — maybe even within weeks.
