Bitcoin Price Drops 4% as Trump EU Tariff Talk Liquidates Over $300M

Bitcoin drops 4% amid Trump’s tariff threats on the EU, leading to over $300M liquidated. The cryptocurrency hit a low of $107,367 before recovering. Traders now focus on maintaining higher price levels, particularly around $110,000, to sustain bullish sentiment despite ongoing trade uncertainties.

Bitcoin’s price took a noticeable hit on May 23, dropping about 4% before finding a bit of footing again. The digital currency dipped to lows of $107,367 on Bitstamp following comments from President Trump regarding tariffs on the European Union. Following his statement that talks with the EU are going nowhere, traders reacted with volatility that liquidated over $300 million in positions, showcasing just how tightly interwoven cryptocurrency and traditional markets have become.

As the financial markets opened that day, the S&P 500 and Nasdaq Composite dipped about 1% and 1.2% respectively, reflecting the immediate impact of Trump’s tariff talk. The response was swift and telling; crypto traders were quick to note how such headlines can create a ripple effect in asset pricing. Prominent trader Skew remarked on social media about a significant “flush of long leverage” due to this news, suggesting that the effects of Trump’s statements were felt broadly across the trading landscape.

CoinGlass, a monitoring service, reported nearly $350 million in liquidations over a just four-hour period, while the total for the day surged past $500 million. Fellow trader Daan Crypto Trades observed that the market reaction was primarily driven by the news cycle, underlining how prices can be influenced by external commentary.

In a broader analysis, The Kobeissi Letter highlighted the balancing act the Trump administration faces between managing tariffs and maintaining economic stability. Overregulation can lead to trade pressure but letting up could spark inflation, complicating matters for the Fed’s interest rate strategy. The markets are at an interesting crossroads, and traders are watching closely.

Looking ahead, traders are keeping an eye on Bitcoin’s performance around the $110,000 mark. Many believe this level is crucial for momentum. Trader Crypto Caesar pushed for a focus on a specific range below $110,000, while Poseidon pointed out that, above this level, resistance appears sparse, suggesting a potential path for upward movement without major hurdles.

All of this chatter comes as investors remain cautious—keeping the geopolitical climate and macroeconomic indicators in mind as they navigate their trading strategies. Remember, this article isn’t offering investment advice or actionable recommendations. Each investment carries inherent risks, so thorough research is always recommended before making any trade decisions.

The volatility in Bitcoin’s price, triggered by Trump’s tariff comments on the EU, has illustrated how closely connected cryptocurrency is to broader economic news. Traders are eyeing key levels, particularly around $110,000, as critical for future pricing trends. Overall, with the landscape shifting, the market seems to be bracing for further falls, depending on both domestic and international fiscal policies. Real-time reactions are a constant reminder of the unpredictable nature of trading today.

Original Source: cointelegraph.com