Bitcoin fell 3.2% on July 15, after a rally pushed it above US$120,000 for the first time. As of 12:40 pm in Singapore, it was trading at US$117,386, marking its biggest drop in over three weeks.

The retreat came after bitcoin peaked at $123,000 on July 14, driven by optimism over potential US digital asset legislation.

Other cryptocurrencies also declined. Ether was down 1.4%, while XRP and Solana dropped nearly 2% each.

Stefan von Haenisch, director of OTC trading at Bitgo Inc., called the drop a typical market pullback after rapid gains. He noted that US$114,000 could be a key support level for bitcoin.

🔗 Source: Bloomberg

🧠 Food for thought

1️⃣ Bitcoin pullbacks are historically common after milestone price levels

The current 3.2% pullback follows a predictable pattern seen in previous Bitcoin rallies, where traders take profits after psychological price barriers are breached.

In 2013, when Bitcoin first reached $1,100, it experienced similar volatility with rapid price increases followed by significant corrections, gaining over $600 in just two weeks before pulling back sharply 1.

Each major price milestone in Bitcoin’s history has triggered profit-taking behavior, a pattern that has repeated across multiple market cycles from 2011 (when Bitcoin traded at just $0.30) through its various peaks in 2013, 2017, and 2021 2.

The market has matured significantly since earlier cycles, with average daily trading volume now in the billions compared to the millions seen in previous rallies, providing more liquidity to absorb these profit-taking events 3.

Today’s pullback appears moderate compared to historical corrections, which have sometimes seen Bitcoin drop 73% from all-time highs during major bear markets, as happened following the 2021 peak 3.

2️⃣ Tariff policies create dual impact on cryptocurrency markets

Early 2025 data shows that Trump’s proposed 50% tariff on Chinese imports initially triggered sharp declines across major cryptocurrencies, demonstrating their sensitivity to macroeconomic policy shifts 4.

When these tariffs were paused for 90 days, crypto markets stabilized, highlighting the direct correlation between trade policy announcements and short-term market sentiment 4.

This pattern aligns with historical evidence that tariffs can increase economic uncertainty and inflation, which typically reduces immediate demand for high-risk assets like cryptocurrencies 5.