Bitcoin Slides Below $114K Amid Escalating Eastern Europe Tensions

The bears have taken full control of Bitcoin as geopolitical tensions escalate. Earlier this week, we reported that Trump issued sanction and tariff threats to Putin and Russia if they did not agree to a ceasefire within the next week. This morning, Trump posted on Truth Social that he has ordered two nuclear submarines to Eastern Europe following “provocative statements” from Dmitry Medvedev, the former President of Russia and now Deputy Chairman of the Security Council.

This latest escalation has driven significant risk-off sentiment across global markets. Bitcoin has dropped back below $114k, and $1.11 trillion has been wiped off the US stock market today. Since Trump began his second term, we saw similar volatility during the brief Israel-Iran conflict. That war lasted just 12 days. Markets fell sharply on the first day but quickly recovered as the situation stabilised. Bulls are hoping for a repeat scenario in Eastern Europe: an initial sell-off followed by a swift resolution that allows prices to push higher again.

The move lower in Bitcoin is not only about geopolitics. US employment data released overnight came in worse than expected, with fewer jobs created than anticipated. This signals a slowing economy, much to Trump’s frustration. He claims the data is being manipulated to make his administration look weaker, pointing to a cooling labour market. On the other hand, the slowdown has boosted expectations that the Federal Reserve will cut rates at the September meeting. Just a few days ago, following Powell’s speech, markets were pricing in no cut. After this data, the probability of a 25bps cut in September has surged to around 80%.

While the bears are currently in control of Bitcoin and sentiment is subdued, history shows that markets often overreact in the short term to external shocks. For long-term investors, these periods tend to create strong buying opportunities.

Stormrake Spotlight: Hedera (HBAR) ($0.241)

HBAR moved lower with the broader market yesterday and is currently trading below its 21 EMA support. As we begin a new month, the updated Central Pivot Range (CPR) levels will act as immediate support within the blue zone on the chart. HBAR maintains a bullish market structure and will remain so as long as it does not create a lower low below $0.231.

BTC/USD Key Levels and Price Action:

Bitcoin lost over 2% yesterday amid these external pressures. With bears controlling both momentum and structure, BTC could revisit its previous all-time high around $112k. For bulls to regain control, they first need to reclaim $116k and reverse this downtrend in the coming days.

BTC Total ETF Flows for 1 Aug: - 804.6 million

*All prices are denominated in USD unless stated otherwise*

Written by Alexandar Artis

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