Asia Crypto News: Bitcoin Drops to $115K Amid Third Major Profit-Taking Wave and Rising Tariff Tensions
August 1, 2025 – Asia Morning Briefing
Bitcoin (BTC) slipped to around $115,400, down 2.3% on the day as Asian markets opened lower, pressured by renewed tariff tensions from the U.S. and major profit-taking by large cryptocurrency holders. This marks the third significant wave of BTC profit-taking in the current 2023–2025 bull cycle, coinciding with a challenging macroeconomic environment.
Profit-Taking by Major Holders Drives BTC Dip
Data from CryptoQuant reveals that between $6 billion and $8 billion in realized profits were recorded in late July as new whale cohorts—investors who accumulated BTC within the previous 155 days—sold substantial amounts of Bitcoin. This phase included an early selloff of approximately 80,000 BTC by a long-standing “OG whale” on July 25, signaling strong intentions among large holders to lock in gains near recent price peaks.
Following this sell-off, exchange inflows surged to 70,000 BTC in a single day, a volume that typically indicates mounting pressure on price as sellers move tokens to markets for liquidation. The Spent Output Profit Ratio (SOPR) spiked sharply among short-term holders during this episode, underlining significant profit realization.
Ethereum (ETH) holders, particularly whales managing WBTC, USDT, and USDC assets, also engaged in profit-taking, with daily realized gains reaching up to $40 million. This broader capital rotation from top crypto assets is consistent with historical patterns wherein profit-taking events lead into two- to four-month consolidation phases before the next bullish push, according to CryptoQuant analysts.
Tariff Escalations Widen Market Pressure
Adding to the bearish undertone, the White House announced new tariffs on various Asian goods Thursday, including measures affecting Canada, thereby fueling concerns over inflation and supply chain disruptions. These developments weighed heavily on Asian equity markets, with Japan’s Nikkei 225 index declining 0.65% at the open and South Korea’s KOSPI following suit.
Cryptocurrencies, which have previously mirrored equity market reactions to geopolitical and macroeconomic shocks, experienced heightened volatility. Coinbase’s premium—tracking price differences between the U.S. exchange and global platforms—recently turned negative, suggesting that American investors are no longer paying a premium for Bitcoin, highlighting softer U.S. retail demand amid the uncertain environment.
Market maker Enflux commented to CoinDesk that “without a clear macro catalyst or sustained inflows, risk appetite remains selective and conviction light.” The firm added that until BTC or ETH can decisively reclaim recent highs, market movements are likely to be “choppy and rotation-based rather than trend-driven.”
Ethereum Shines Amid Volatility
Despite Bitcoin’s decline, Ethereum posted robust performance last month, surging over 50% in July—the strongest monthly gain since 2022. This rally was fueled by significant institutional interest and optimism surrounding Ethereum-based exchange-traded funds (ETFs). Notably, U.S. spot ETF inflows into ETH reached $5.3 billion, with prominent analysts forecasting potential breakout targets of $15,000 to $16,000 during this bull cycle.
Broader Market Context
Besides cryptocurrencies, gold prices experienced a mild retreat after earlier gains, settling around $3,287 per ounce amid a firm U.S. dollar and Federal Reserve signals to maintain rates in the near term. U.S. stock futures also dipped as investors digested mixed earnings reports from Big Tech and awaited July’s U.S. jobs data.
Summary of Key Market Moves:
- Bitcoin (BTC): Trading near $115,400, down 2.3%, within a consolidating range pressured by tariff news and profit-taking.
- Ethereum (ETH): Near $3,800 after July’s 50% surge; buoyed by strong institutional demand and optimistic price forecasts.
- Nikkei 225: Opened down 0.65% amid tariff fears.
- Gold: Slight pullback to $3,287, offsetting inflation concerns with dip-buying.
What’s Next?
Investors are advised to proceed cautiously as macroeconomic risks stemming from geopolitical tensions and tariff escalations persist. Market watchers will be closely monitoring BTC and ETH price actions for signs of a sustainable breakout or further consolidation.
For the latest updates and in-depth crypto market insights, stay tuned to CoinDesk’s Asia Morning Briefing and Crypto Daybook Americas newsletter.
Reported by Sam Reynolds with editorial assistance from Aoyon Ashraf. Parts of this article were generated with AI tools, reviewed for accuracy and compliance with journalistic standards.
About the Author:
Sam Reynolds is a seasoned Asia-based reporter specializing in cryptocurrency markets and macroeconomic developments. He was part of CoinDesk’s award-winning team that broke the FTX collapse story.