Panic Sell: Bitcoin Falls Below $114K After Trump’s Nuclear Threat

Summary: Bitcoin plunged to its lowest level in weeks after former President Donald Trump ordered U.S. nuclear submarines closer to Russia, escalating geopolitical tensions and triggering market-wide risk aversion across crypto and tech sectors.

Background: Trump’s Military Post Raises Global Alarms

Global markets reacted to recent reports that former U.S. President Donald Trump ordered two nuclear submarines to reposition closer to Russia. The decision came after former Russian President Dmitry Medvedev dismissed a 10-day ultimatum from Trump to resolve the Ukraine conflict.

On Truth Social, Trump warned, “Words are very important and can often lead to unintended consequences,” fueling investor anxiety. As tensions escalated, traders quickly exited risk assets, showing the ripple effects of geopolitics on crypto markets.

Submarine Maneuvers Shake Market Confidence

The movement of U.S. submarines toward volatile regions triggered immediate investor concern. Risk assets, particularly in crypto and tech, fell in tandem—highlighting their growing correlation amid global instability.

Bitcoin Plunges to $113K as Longs Get Wiped Out

Bitcoin dropped sharply to $113,155, marking its lowest level since early July. The sell-off wiped out over $200 million in leveraged long positions, as seen on CoinGecko.

Crypto markets tracked Wall Street’s decline, with investors retreating from speculative bets amid growing uncertainty. Futures premiums narrowed to about 6%, indicating waning appetite for high-risk positions.

Fed Resignation Adds to Market Volatility

Adding more fuel to investor caution, Federal Reserve Governor Adriana Kugler announced her resignation, effective next Friday. The unexpected departure, 18 months before her term’s end, opens the door for Trump to appoint a more dovish replacement amid his push for immediate rate cuts.

NEWS: Fed governor Adriana Kugler is resigning effective next Friday. https://t.co/JxLcltM1mg

— Nick Timiraos (@NickTimiraos) August 1, 2025

Wider Market Jitters Extend Beyond Crypto

Traditional safe havens showed mixed results. Gold hovered near $3,350 per ounce but failed to attract heavy inflows. Instead, traders poured capital into cash and short-term U.S. Treasuries amid mounting tensions and murky economic data.

Trump-Medvedev War of Words Clouds Outlook

Trump’s recent statements have triggered a fresh round of verbal sparring with Dmitry Medvedev, who he dubbed “the failed former president of Russia.” The Kremlin has remained officially silent, but Moscow’s exchange slumped following Trump’s social media post.

This ongoing rhetorical battle has added to the uncertainty weighing heavily on global markets, particularly for digitally native assets like Bitcoin.

Outlook: Bitcoin Holds Ground Despite Pressure

Despite the recent slide, Bitcoin remains significantly above its January levels and is only 7% off its July high of $123,182. Investors are now closely watching political developments and macroeconomic signals to navigate potential swing points in the volatile crypto market.

Featured image courtesy of HII, chart via TradingView