Bitcoin Sinks Below $115K Amid Trump-Led Political Turmoil and Global Tensions

Bitcoin tumbled under the $115,000 mark following the escalating geopolitical tensions and renewed political interference from former President Donald Trump continues to rattled investor confidence.

The leading digital asset fell to $113,164, marking its lowest in weeks, and triggering over $200 million in liquidations from overleveraged long positions.

The sell-off comes as markets react to intensifying global uncertainty and Trump’s aggressive stance on both foreign policy and domestic institutions.

In a post on Truth Social, Trump announced that he had deployed two U.S. nuclear submarines in response to remarks by Russia Security Council's deputy chairman's call for a war.

In response to Trump's ultimatum to Russia to end its war with Ukraine within ten days, deputy chairman Medvedev called it a "step towards war."

This provocative statement has raised the alarm bell of the Trump Administration, who has made the necessary precaution in case Russia launches an attack. On his Truth Social, Trump wrote

"I have ordered two Nuclear Submarines to be positioned in the appropriate regions, just in case these foolish adn inflammatory statements are more than just that..."

The timing of the Bitcoin price dip aligned closely with Trump’s remarks, reinforcing BTC’s increasing sensitivity to macro risk and rising tensions between nuclear powers.

Trump Targets U.S. Institutions, Creating Greater Market Volatility

Trump’s market-shaking comments didn’t stop at international threats. He also launched attacks on U.S. economic data integrity, accusing Erika McEntarfer, the Commissioner of Labor Statistics, of falsifying employment figures to benefit Kamala Harris ahead of the 2024 election.

Trump also threatened her immediate removal, claiming she would be replaced by someone much more competent and qualified.

Trump then turned his crosshair to the Federal Reserve, calling Chair Jerome Powell a “stubborn MORON” and slamming the central bank’s refusal to cut rates.

While presidents traditionally avoid interfering with central bank decisions, Trump urged Fed governors to override Powell and implement rate cuts immediately to support what he describes as a booming economy under his leadership.

The Federal Reserve has kept interest rates unchanged across five straight meetings, citing persistent inflation risks. However, Trump, Trump—through a barrage of social media posts—blamed Chair Jerome Powell for harming the economy and ignoring the fallout from newly imposed tariffs.

Amid the mounting pressure, Federal Reserve Governor Adriana Kugler announced her resignation on Friday, opening a key seat for a Trump nominee.

Kugler, appointed by President Biden in 2023, served as a permanent voting member of the Federal Open Market Committee (FOMC).

While she gave no reason for stepping down early, Kugler stated she would return to Georgetown University in the fall.

Her departure comes nearly 18 months before her term was set to end and follows her support for maintaining current interest rates amid ongoing inflation concerns.

Powell thanked Kugler for her service, emphasizing her academic contributions and policy insight.

Crypto Investors Shifting Away From Bitcoin To Short-Term Treasury

Bitcoin’s price decline has sparked broader unease across digital asset markets. Despite trading just 7% below its all-time high of $123,182 reached in mid-July, market sentiment is showing signs of weakening.

The monthly futures premium for Bitcoin has narrowed to just 6%, suggesting that traders are backing away from high-leverage long positions.

Analysts interpret this as a signal that risk appetite is fading, even as institutional interest remains.

Rather than behaving as a safe haven, Bitcoin has lately mirrored risk assets like tech stocks, leaving it vulnerable to global shocks.

With tensions rising between the U.S. and Russia, and ongoing trade disputes weighing on the macro outlook, investors are increasingly shifting to cash and short-term Treasuries.

Meanwhile, gold prices have held steady around $3,350, offering limited relief for those expecting Bitcoin to act as a digital alternative.

Despite the sell-off, long-term outlooks for Bitcoin remain resilient. Ray Dalio, founder of Bridgewater Associates, has updated his stance on Bitcoin.

In a recent podcast, he recommended investors allocate up to 15% of their portfolios to gold or Bitcoin as protection against rising U.S. debt and inflation.

“The U.S. is entering a debt doom loop,” Dalio warned, pointing to Treasury forecasts of $12 trillion in new debt within the next year.

He acknowledged Bitcoin’s volatility but emphasized that its emerging role as a store of value is becoming increasingly difficult to dismiss.