Over the past 24 hours, Bitcoin's price has fallen by 4.5%, reaching $108,000 amid Trump's threats to impose tariffs against the EU. This decline has resulted in the liquidation of over $600 million in long positions.
Market Reaction to Trump's Threats
Bitcoin dropped 4.5% to $108,000, which according to Coinglass, led to the liquidation of around $638 million in leveraged positions. Trump mentioned he would not make a deal with the EU but hinted at possibly delaying tariffs if the EU builds factories in the U.S. Following this drop, major altcoins like Ethereum, XRP, Solana, Dogecoin, and Cardano also experienced significant losses, dropping by 3-6%.
Trump in a Tough Spot
Commenting on the market situation, The Kobeissi Letter indicated that Trump is in a tough position. If he presses tariffs too hard, it could cause market trades to fall apart. But if he backs off too much, inflation expectations might rise again. Trump needs to find a way to keep tariffs sufficiently high to demonstrate strength while avoiding an increase in treasury yields, all without assistance from the Fed, which isn't lowering interest rates yet.
Current Crypto Market Analysis
Analyst Benjamin Cowen noted that Bitcoin's recent drop resembles the typical dip following a golden cross. He expects this pullback to last a few days, with a potential bounce next week. Experts agree that this crypto cycle is much more complex and different from past ones. Analyst Michaël van de Poppe believes investors should remain open-minded over the next 1-2 years, as the market may hold surprises. He suggests that the chances of a longer cycle are now much higher, with Bitcoin potentially hitting $400K–$600K by 2026/2027.
Recent events in the cryptocurrency market illustrate how external factors, such as political threats, can significantly impact trading. Analysts predict potential fluctuations in the future, highlighting a long-term growth outlook for Bitcoin.
