Bitcoin Price Volatility After Trump Tariff: Market Impact & Outlook
Background: Trump’s Tariff Announcement Triggers Market Drop
Bitcoin price volatility surged on Friday as the cryptocurrency briefly dropped to $102,000 following U.S. President Donald Trump’s announcement of a 100% tariff on Chinese imports. The news triggered a wave of selling across financial markets, including sharp declines in digital assets. Swan Bitcoin CEO Cory Klippsten told Cointelegraph, “If the broader risk-off mood holds, Bitcoin can get dragged around a bit before it finds support and starts to decouple again.”
The sharp move came as traders reacted to heightened trade tensions between the U.S. and China. This event was not an isolated case—in April, similar tariff news from Trump previously rattled the crypto sector, and on February 1, a separate executive order imposing tariffs also caused Bitcoin to dip below $100,000.
Market Reaction and Liquidations
Heavy Bitcoin price volatility after the Trump tariff announcement led to rapid liquidations in the crypto derivatives market. According to data from CoinGlass, approximately $2.19 billion in BTC long positions were liquidated over a 24-hour span. Across the broader crypto market, the total for long liquidations reached $8.02 billion.
Ray Salmond, Cointelegraph’s head of markets, highlighted how quickly traders were affected, noting that leveraged traders “were totally caught off guard” by the speed and scale of the price drop. Salmond also described price dislocations between exchanges: Bitcoin prices on Coinbase fell to $107,000, while Binance perpetual futures saw the BTC/USDT pair touch $102,000. He pointed to liquidity data from Hyblock that showed a cluster of remaining liquidation risk between $102,000 and $97,000.
Klippsten said such macro-driven dips typically result in flushing out “leveraged traders and weak hands,” before the market resets for the next upward movement. “We’ve got a little panic in the markets right now, classic macro whiplash. Trump and China are trading tariff threats, equities are off, and traders are scrambling to derisk,” he told Cointelegraph.
Analyst Perspectives: Buying Opportunity or More Volatility?
Despite the significant Bitcoin price volatility after the Trump tariff news, some analysts see possible buying opportunities. Bitwise Invest senior investment strategist Juan Leon noted on X that historically, “the best time to buy BTC has tended to be when it is being dragged down by broader markets.”
Bitwise Invest CIO Matt Hougan echoed a similar sentiment, sharing to his social media followers that while many traders claim they’ll buy Bitcoin during dips, uncertainty often leads to hesitation: “It never feels good when you buy the dip,” Hougan said, adding that disciplined approaches can help navigate market uncertainty.
Analysts agree that while the current market is experiencing turbulence, periods of heightened Bitcoin price volatility after macroeconomic shocks may also set the stage for future momentum if support levels hold and selling pressure eases.
For more on market trends and volatility, visit the Cryptocurrency section on Vizi.com.
What’s Next for Bitcoin Amid Trade Tensions?
With the ongoing trade tensions between the U.S. and China, investors will closely monitor macroeconomic developments and the impact of further tariff announcements. Experienced market participants advise caution as volatility remains elevated and position adjustments continue among leveraged traders.
Additional analysis and up-to-date coverage of Bitcoin price volatility after Trump’s tariff announcement are available at the source below.
Sources: Cointelegraph
