Bitcoin’s Wild Ride: Geopolitics, Tariffs, and Fed Jitters Make Traders Sweat

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After soaring past $123,000 on July 14, Bitcoin decided to take a little tumble, dropping to a cozy $116,221 before catching its breath above $117,000 by July 15. Traders, tighten those belts and watch that support zone between $117,000 and $116,300 – holding steady here might spark a grand comeback.

Geopolitical Drama Takes the Stage

Just hours after the cryptocurrency king hit a high above $123,000 on July 14, Bitcoin ( BTC) decided to go for a quick dip, plunging to $116,221 before gradually climbing back to above $117,000. The price drop ended a short but sweet rally that saw Bitcoin rise with double-digit gains in a mere four days. By July 15, at 7:30 a.m. EST, the asset, riding high with a 63% market dominance, was back above $117,138.

But wait, there’s more! Bitcoin’s descent also led to a glorious reversal for those poor short traders. They saw positions worth over $1 billion liquidated between July 10 and 11. According to Coinglass data, over $380 million worth of long positions were flushed down the market drain in just 24 hours. Meanwhile, short bets totalling just over $80 million were liquidated, accounting for more than 90% of all wiped-out positions on July 11. Ouch!

So, what’s to blame for this market flip-flop? According to Bitunix Analyst, it’s all the juicy geopolitical drama. President Donald Trump’s shiny new threat of heavy tariffs on Russia (if they don’t agree to a ceasefire with Ukraine) has everyone biting their nails. The analyst notes that Trump voiced his “disappointment” with President Putin, warning that if Russia doesn’t reach a ceasefire in 50 days, the U.S. would unleash yet another round of tariffs. Meanwhile, the U.S. is sending even more military aid to Ukraine, creating the perfect storm of geopolitical instability. Grab your popcorn, folks.

“Trump is not happy,” the Bitunix analyst quipped, “and his grumbling is shaking the markets.”

The Fed’s Rate Dance: Keep Your Hopes in Check

But it’s not just Trump causing all the trouble. The U.S. President had previously been a bit shy about using tariffs to force Moscow to the negotiating table, but recent weeks of Russia’s ongoing bombardment of Ukraine seem to have pushed Trump over the edge. Now he’s not holding back.

Meanwhile, back in the world of economics, the news doesn’t get any better. A Bitunix analyst also links Bitcoin’s pullback to the latest U.S. June consumer price index (CPI) predictions, which are showing a “0.3% monthly increase, largely due to rising oil prices and tariff-induced costs.” This has been a real mood killer, damping hopes that the U.S. Federal Reserve might cut interest rates anytime soon. Sorry folks, rate cuts aren’t coming for dessert just yet.

“The odds of a September rate cut have fallen to 60%,” the analyst pointed out, watching the market sob uncontrollably.

For traders, the strategy is clear: watch that key support zone between $117,000 and $116,300 like a hawk. If Bitcoin can hold onto this level, we might just see a comeback. But if the price dips below, the next support zone is lurking at $110,500. So instead of chasing the wild rollercoaster ride, the expert advice is to wait for a clearer signal. Especially with the upcoming CPI data, which is likely to send shockwaves through market sentiment. Hold on tight!

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2025-07-15 18:32