Bitcoin recovered to roughly $79,300 on Aug. 24 after briefly dropping toward $78,200 when President Donald Trump threatened new tariffs on Canada. The bounce comes as large wallets have started selling into the rally, and a Bloomberg Intelligence strategist warns the move up may be a chance to sell rather than a new leg higher.
Bitcoin slipped from above $79,000 toward $78,200 on Aug. 24 after Trump threatened to raise tariffs on Canadian vehicles, auto parts and steel to 50% starting Jan. 1, 2027. Buyers stepped back in quickly, and the token traded near $79,300, up more than 2% over the previous 24 hours and within roughly $500 of $80,000 after an intraday high near $79,900.
Tariff threat follows collapsed talks
The threat followed the collapse of U.S.-Canada trade talks on Aug. 21, after negotiators failed to agree on a deal that would have cut the U.S. car and light-truck tariff from 25% to 15% and the aluminum and steel duty from 50% to 25%. Canada plans retaliatory tariffs on selected U.S. products starting Sept. 8, responding to existing 50% U.S. duties on about $20 billion of Canadian goods. Bitcoin's limited reaction contrasts with February, when the asset lost the $65,000 support level and fell roughly 5% as earlier tariffs loomed. This time it entered Monday's announcement with momentum, having risen almost 27% between its Aug. 17 low and its Aug. 21 high.
Whales sell as bullish calls mount
Behind the rally, on-chain data show a split emerging among holders. Wallets holding 10,000 to 100,000 BTC accumulated from mid-June through the rally but peaked around Aug. 21 before dropping sharply by Aug. 24, even as smaller 100-to-1,000 BTC and 1,000-to-10,000 BTC cohorts resumed buying. The distribution comes as bullish price calls pile up: Standard Chartered has reiterated a $500,000 target, and Strive reportedly bought more than 1,100 BTC for $80 million, taking its holdings above 21,000 BTC.
Not everyone reads the bounce as bullish
Bloomberg Intelligence senior commodity strategist Mike McGlone argued Bitcoin has rolled over into a bear market, making the rebound temporary relief rather than a durable reversal. He pointed to the 30-year Treasury yield reaching its highest level since 2007 as evidence that tightening financial conditions threaten speculative assets, writing: "Bitcoin's bounce may be a gift to sell." Separately, spot Bitcoin ETFs pulled in about $1.92 billion across five sessions during the latest rally.
Sources: crypto.news, Coinpedia Fintech News, CCN
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