Market Digest: Bitcoin Slips below $114 as Trump Targets EU, India, and Brazil

Key Takeaways

Trump escalates trade threats, warning of 35% tariffs on EU exports unless a $600 billion investment pledge is fulfilled.
India faces “very substantial” tariff hikes, with Trump linking New Delhi’s Russian oil purchases to war funding.
Brazil rejects tariff diplomacy, as Lula vows WTO action and shifts focus to BRICS partnerships.
Bitcoin (BTC) dropped to 113,500, breaching $115,800 support after weeks of failed retests. The move triggered broad de-risking and over $1 billion in liquidations across the crypto complex.
Gold climbed to $3,370.98, regaining safe-haven appeal as investors hedged against mounting geopolitical risks and fading risk appetite.

Geopolitics & Market Sentiment

On August 6, markets showed mixed performance, with a broad pullback in risk assets led by sharp declines in cryptocurrencies. However, a few benchmarks were spared, including Japan’s Nikkei 225, the Euronext 100, the FTSE 100, and gold, which regained its safe-haven appeal amid rising geopolitical friction.

The market’s split can be attributed to investors’ growing uncertainty, as former U.S. President Donald Trump reignited global trade tensions with fresh tariff threats against the EU and India.

Donald Trump warned that the EU faces a 35% tariff on its exports unless it fulfills a $600 billion investment pledge agreed to in late July. The pledge, which Trump says was part of a handshake deal with European Commission President Ursula von der Leyen, is based on expected private-sector flows, and not a binding commitment. While EU officials said the bloc cannot enforce such investments, Trump warned that failure to meet the target would trigger a tariff reset, undoing a prior reduction to 15%.

Trump also vowed to impose a “very substantial” rise in tariffs on Indian goods within 24 hours, citing India’s continued purchases of Russian oil. He accused New Delhi of fueling the Ukraine war and dismissed its offer of zero tariffs on U.S. goods as inadequate. India, which relies on Russia for over a third of its oil imports, argued the purchases are helping stabilize global prices and prevent another 2022-style price shock.

As a pushback to Trump’s tariff threats, Brazilian President Luiz Inácio Lula da Silva rejected Donald Trump’s offer to discuss tariffs by phone, saying Brazil would pursue its interests through all legal channels, including the World Trade Organisation (WTO).

The response came after the U.S. imposed a 50% tariff on Brazilian goods, a move Trump framed as retaliation for what he called a political ‘witch hunt’ against former President Jair Bolsonaro, who is on trial over coup allegations.

Lula described the day the tariffs were announced as “the most regrettable” moment in the history of U.S.-Brazil relations, and said his government was already taking steps to deepen foreign trade ties with other partners, including BRICS nations. “I will call Xi Jinping, I will call Prime Minister Modi… I won’t call Putin, because he can’t travel now,” he added.

On the crypto front, Bitcoin dropped again to around $113,500 after briefly stabilizing near $115,000, pulling major altcoins down with it. The decline followed a decisive break below key support at $115,800, following three weeks of unsuccessful retests. This triggered a broader wave of de-risking across the market, particularly in altcoins where leverage had been building.

According to Bitfinex Alpha, more than $1 billion in daily liquidations on August 2 signaled a wave of panic selling, wiping out nearly $59 billion in value from the broader altcoin market.

Despite the setback, Bitcoin remains structurally more resilient, with a market capitalization still above $2.2 trillion, while altcoins continue to underperform. This divergence underscores Bitcoin’s role as a macro-sensitive, institutionally supported asset.

However, with ETF inflows slowing and Federal Reserve policy turning more hawkish, any sustained recovery is likely to depend on renewed institutional demand or a clear macroeconomic catalyst. A technical rebound from current levels remains plausible, though broader gains appear limited by subdued risk appetite and policy uncertainty.

Global Indices

S&P 500 (SPX): 6,299.20 (-0.49%)
Dow Jones (DJI): 44,111.74 (-0.14%)
Nasdaq Composite (IIC): 20,916.55 (-0.65%)
Nikkei 225 Futures (NK2251!): 40,770.00 (+0.30%)
Euronext 100 (N100): 1,559.40 (+0.07%)
FTSE 100 (FTSE): 9,174.30 (+0.30%)

Cryptocurrencies

Bitcoin (BTCUSD): 113,780 (-0.21%)
Ethereum (ETHUSDT): 3,632.20 (+0.39%)
Binance Coin (BNBUSDT): 757.52 (+0.32%)
Solana (SOLUSDT): 163.30 (-0.28%)
Notcoin (NOTUSDT): 0.00198431 (-2.16%)
Bitcoin Dominance (BTC.D): 61.82% (-0.04%)

Commodities

Gold (XAUUSD): 3,370.98 (-0.29%)
Silver (XAGUSD): 37.80 (+0.03%)
WTI Crude (USOIL): 65.57 (+0.63%)
Brent Crude (BRENT): 604.46 (-3.68%)

Major Stocks

NVIDIA (NVDA): 178.26 (-0.97%)
Tesla (TSLA): 308.72 (-0.17%)
Microsoft (MSFT): 527.75 (-1.47%)
Meta Platforms (META): 763.46 (-1.66%)
Apple (AAPL): 202.92 (-0.21%)
Amazon (AMZN): 213.75 (+0.99%)

Forex

U.S. Dollar Index (DXY): 98.29 (-0.01%)
EUR/USD: 1.1578 (+0.03%)
GBP/USD: 1.3306 (+0.08%)
USD/JPY: 147.423 (-0.13%)