In early August 2025, Bitcoin, the leading cryptocurrency, experienced a sharp price drop, reaching $113,164, as a result of growing geopolitical tensions.
Price Decline of Bitcoin Due to Trump's Actions
After Trump announced the deployment of two nuclear submarines for potential attacks on Russia, Bitcoin's price fell sharply by 7% from $123K. This drop raised concerns among market participants about further declines.
Trump's Criticism and Its Consequences
Trump also accused the Labor Department of manipulating employment data in support of Kamala Harris, calling for the resignation of Commissioner Erika McEntarfer. He criticized Federal Reserve Chairman Jerome Powell, demanding immediate cuts in interest rates.
Ray Dalio's Changing Stance on Bitcoin
Despite the chaotic situation, Ray Dalio, a former Bitcoin skeptic, is considering a portfolio allocation of 15% to gold or Bitcoin as a hedge against rising U.S. debt. Meanwhile, Bitcoin futures premiums have narrowed to 6%, indicating traders’ lack of confidence in a bullish market momentum.
Given the current geopolitical risks and financial market instability, many experts suggest that the price drop of Bitcoin may be temporary, with potential for growth in the future.
