Bitcoin (BTC) price has dropped below $120,000 after hitting an all-time high of $123,091 earlier today. The decline in BTC price follows fresh geopolitical tension as U.S. President Donald Trump threatened to impose 100% tariffs on Russia within 50 days if the war with Ukraine does not stop.
BTC Price Pulls Back After Reaching All-Time High
Bitcoin price rose sharply over the weekend and early Monday to reach $123,091, its highest price ever. However, it later dropped to $120,124 and continued to slide to around $119,900 as of the latest reports. This retracement came after President Trump made public statements threatening new tariffs on Russia and confirming a weapons deal with NATO allies for Ukraine.
Still, the sudden BTC price correction has raised concerns that Bitcoin may have reached a short-term peak. A correction or sideways movement could follow, depending on market sentiment and global political developments.
However, with the crypto week just starting, Bitcoin price could see an additional rally especially if the crypto bills are voted in. According to analysts, this bullish momentum may fuel BTC price towards a new ATH of $136K.
Trump’s 100% Tariff Threat on Russia Sparks Market Reaction
During a joint press conference with NATO Secretary General Mark Rutte, President Trump stated that Russia would face secondary tariffs of up to 100% if no ceasefire deal is reached in Ukraine within 50 days. “We have no choice but to do secondary tariffs… they’re pretty tough,” Trump said at the White House on Monday.
He also confirmed that a large weapons deal with NATO has been finalized. According to Trump, “We’ll send them a lot of weapons of all kinds, and they’re going to deliver those weapons immediately.” He emphasized that the U.S. will manufacture the weapons, while European allies will fund them.
Post this announcement, Bitcoin’s price dipped by over $3000, testing the $119k support. These threats are following Trump’s additional announcement of a 30% tariff on imports from Mexico and the EU, along with a 50% tariff on copper and other commodities from multiple countries.
On-Chain Metrics Suggest Profit-Taking and Possible Local Top
According to CryptoQuant.com, exchange netflows showed a sharp spike after Bitcoin reached $123,000, suggesting profit-taking activity. A post from the firm noted,
“This kind of movement typically suggests a local top and could lead to a healthy correction or consolidation in the coming days.”
Meanwhile, the Crypto Fear & Greed Index moved up to 70, which places it firmly in the “Greed” zone. While this shows positive investor sentiment, high greed levels can also indicate overbought conditions. Per analysts, traders often take profits when the index reaches such levels.
Derivatives markets showed growing momentum, with a 3.87% rise in Bitcoin futures open interest to $87.95 billion. According to Coinglass, the trading volume also surged by 146.88% to over $152 billion, signalLing strong but possibly overextended buying pressure which may sustain the BTC price upward trend.
Kelvin Munene Murithi
Kelvin Munene is a crypto and finance journalist with over 5 years of experience, offering in-depth market analysis and expert commentary .
With a Bachelor’s degree in Journalism and Actuarial Science from Mount Kenya University, Kelvin is known for his meticulous research and strong writing skills, particularly in cryptocurrency, blockchain, and financial markets.
His work has been featured across top industry publications such as Coingape, Cryptobasic, MetaNews, Cryptotimes, Coinedition, TheCoinrepublic, Cryptotale, and Analytics Insight among others, where he consistently provides timely updates and insightful content.
Kelvin’s focus lies in uncovering emerging trends in the crypto space, delivering factual and data-driven analyses that help readers make informed decisions. His expertise extends across market cycles, technological innovations, and regulatory shifts that shape the crypto landscape.
Beyond his professional achievements, Kelvin has a passion for chess, traveling, and exploring new adventures.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
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