Bitcoin Reacts to Trump’s Tariff Announcement, Triggering Market Volatility
Bitcoin, along with other risk assets, experienced a jolt of volatility following President Trump’s announcement regarding potential tariffs on the European Union. This move led to a temporary dip in the Bitcoin price before it recovered. Here’s a breakdown of what happened.
Bitcoin’s Price Fluctuations
- Bitcoin’s price initially dropped by as much as 4% in response to the news.
- The price found support, and traders are now watching key levels to maintain bullish momentum.
- $110,000 is currently being eyed as a key resistance level.
Trump’s Tariff Announcement and Market Reaction
The market’s reaction stemmed from a statement by President Trump on Truth Social, where he indicated that discussions with the EU were “going nowhere” and suggested a 50% tariff on the European Union starting June 1, 2025.
U.S. stocks also reacted, with the S&P 500 and Nasdaq Composite Index both declining.
Trader Perspectives
According to crypto trader Skew on X, the market movement was a “flush of long leverage & de-risk selling from spot,” driven by the headlines.
Data from CoinGlass indicated that liquidations reached nearly $350 million in 4 hours and over $500 million in 24 hours.
Another trader, Daan Crypto Trades, noted the importance of monitoring how Bitcoin performs relative to equities amid the renewed trade uncertainty.
Macroeconomic Considerations
The Kobeissi Letter on X suggested that the Trump administration faces a balancing act with tariffs, needing to maintain them without causing treasury yields to rise, especially given the Federal Reserve’s reluctance to cut interest rates.
Key Price Levels to Watch
Traders are closely watching key Bitcoin price levels to maintain bullish momentum. Crypto Caesar pointed to an area of interest immediately below $110,000.
Poseidon highlighted the relatively thin resistance above the current price, suggesting potential for upward movement.
Don’t forget: above here, it’s nothing but thin air.
In Summary
Bitcoin experienced a volatile trading day in response to President Trump’s tariff announcement. While the price dipped, it has since recovered, and traders are now focused on key levels to sustain bullish momentum. The situation highlights the interconnectedness of the crypto market with traditional financial markets and geopolitical events. As reported by Cointelegraph, the market’s reaction underscores the sensitivity of digital assets to global economic news.
Disclaimer
The information provided in this article is for informational purposes only and does not constitute financial advice. All news content is sourced from trusted platforms like Cointelegraph, Bitcoinist, and our own writers written with added value, editorial insights and reviews by our team. Always do your own research before making any investment decisions.
