Bitcoin’s wild ride continues as Trump’s shock 100 % tariffs on Chinese imports send global markets reeling. Within hours, BTC’s price plunged and triggered nearly $20 billion in crypto liquidations—the largest in months. Traders now face a critical question: has Bitcoin hit bottom, or is more pain ahead?
Tariff Shock Sends BTC Sliding
Donald Trump stunned markets when he announced a 100 % tariff on Chinese imports, along with tough export controls on critical software. As soon as the news hit, risk‐asset markets tumbled. The S&P 500 fell more than 2 %. Bitcoin (BTC) was not spared. It plunged from above $120,000 toward $104,000 in short order. The sudden policy shift rattled traders who had loaded up on leverage.
Record Liquidation Hits Crypto Market
The fallout was brutal. In just 24 hours, liquidations across crypto markets surpassed $19 billion. Over 1.6 million traders were forced out of their positions. Bitcoin alone accounted for several billions in wiped‐out long bets. Data providers note that the actual figure may be higher, since exchanges tend to underreport real‐time liquidation activity. The cascade of stop losses and margin calls only fueled the sell‐off further.
Why BTC Fell Hard: Leverage & Weak Hands
Many traders had highly leveraged positions on BTC. When price moved sharply lower, margin calls triggered automatic liquidations. The effect created feedback loops: price drops triggered more liquidations, which pushed prices down further. Some analysts argue we have entered a “crypto cleanse”—the market is flushing out overly aggressive bulls. Others warn this may not be the bottom yet, as weak hands capitulate.
Bitcoin Price Outlook Amid Tariffs
At press time, Bitcoin hovered near $104,000–$110,000, far below recent highs. Some traders warn that support at $100,000 may break. If that fails, BTC might revisit lower zones. But not all is bleak. Some market watchers see the crash as a reset. They expect volatility to calm before BTC attempts a recovery. Still, with macro uncertainty high and Trump’s tariff threats ongoing, the path forward remains rocky.
Trump, Tariffs and the Broader Risk
This event shows how geopolitical policy and macro moves can heavily sway digital assets. Trump’s escalation of trade tensions turned what had been a bullish crypto narrative on its head. Tariffs have always loomed as a tail risk, but few expected such a dramatic reaction. Now, BTC’s price, liquidity, and trader confidence all face pressure. If further tariff escalations occur, we could see additional liquidation waves. Traders must now watch both the political headlines and on-chain signals.
In sum: the Trump tariff bombshell triggered a historic liquidation event, sending Bitcoin’s price tumbling and exposing fragility in leveraged markets. Whether BTC can recover quickly or must tread a longer path upward will depend on how tariffs, global markets, and trader psychology evolve in the days ahead.
