Bitcoin’s Bull Run Faces Temporary Setback Amid Geopolitical Tensions
Bitcoin’s recent record-breaking rally encountered a minor setback following former President Donald Trump’s announcement of proposed steep tariffs on the European Union. The cryptocurrency, which had surged to an all-time high above $111,000, retreated 1.8% to $108,531 as markets reacted to the geopolitical development. Despite this temporary pullback, analysts emphasize that the current rally is fundamentally different from previous cycles, driven by institutional capital inflows and restrained leverage rather than speculative froth. As of May 23, 2025, Bitcoin’s price stands at $109,634.22 USDT, indicating resilience in the face of external pressures. This article explores the factors behind Bitcoin’s recent performance and the broader implications for the cryptocurrency market.
Bitcoin Rally Stalls Amid Trump’s EU Tariff Announcement
Bitcoin’s record-breaking rally faltered after former President Donald TRUMP proposed imposing steep tariffs on the European Union. The cryptocurrency had surged to an all-time high above $111,000 before retreating 1.8% to $108,531 following the geopolitical development.
Market analysts note this rally differs fundamentally from previous cycles, with institutional capital inflows and restrained leverage replacing speculative froth. Bitcoin ETFs attracted over $1.3 billion in just five days, underscoring growing mainstream adoption.
Risk appetite diminished sharply after Trump’s tariff remarks. Probability of bitcoin reaching $115,000 by Sunday plunged from 24% to 15.4% as traders reassessed positions.
Texas Governor Greg Abbott Signals Support for Bitcoin Reserve Bill
Texas Governor Greg Abbott has reignited speculation about his stance on cryptocurrency by amplifying a news article discussing the proposed Strategic Bitcoin Reserve (SBR) bill. The MOVE underscores his consistent advocacy for digital assets, a position cemented by his past legislative actions.
Abbott’s track record includes signing multiple pro-crypto bills and actively recruiting Bitcoin mining operations to Texas. He has publicly championed the industry’s economic benefits and potential to stabilize the state’s strained power grid—a system increasingly challenged by extreme weather and rising energy demands.
The governor’s latest gesture aligns with his broader strategy to position Texas as a cryptocurrency hub. By leveraging his social media platform to highlight the SBR initiative, Abbott continues shaping the narrative around Bitcoin’s institutional adoption.
Man Sentenced to Six Years for Laundering $1M via Bitcoin for Criminals
Trung Nguyen of Danvers, Massachusetts, has been sentenced to six years in prison for operating an unlicensed money-transmitting business that converted over $1 million in illicit cash into Bitcoin. His operation, National Vending, catered to scammers and drug dealers under a "no questions asked" policy.
Court documents reveal Nguyen accepted $250,000 from a self-identified methamphetamine dealer and $445,000 from victims of romance scams. The funds were funneled to overseas con artists through cryptocurrency exchanges. Nguyen actively concealed his activities by misrepresenting his business to banks and trading platforms.
Bitcoin Profit-Taking Muted as Price Hits $111,861 ATH
Bitcoin surged past $110,000 resistance to set a new all-time high of $111,861.22, yet profit realization remains subdued. Glassnode data reveals only $1 billion in profits were taken—less than half the $2.1 billion recorded during Bitcoin’s first breach of $100,000.
Holder confidence appears resolute. The divergence between price appreciation and profit-taking suggests long-term conviction outweighs short-term gain-seeking. Market structure mirrors early-stage bull cycles where supply tightens as investors anticipate higher targets.
Bitcoin Volatility Triggers $550M Liquidation Event as Prices Swing to $110k
Crypto derivatives markets witnessed a brutal liquidation storm as Bitcoin’s whipsaw price action erased over $551 million in positions within 24 hours. Nearly 72% of casualties were long traders, with 162,994 positions forcibly closed across exchanges. The single largest blow landed on OKX—a $9.53 million BTC-USDT swap order vaporized in the turmoil.
Bitcoin’s parabolic rally to $111,000 on May 22nd met fierce resistance, triggering a cascade of liquidations as prices dipped toward $107,000 before recovering to $110,000 during London hours. The reversal correlated with broader risk aversion after former U.S. President Trump’s threat of 50% EU tariffs rattled global markets.
Bybit absorbed the heaviest damage at $197.1 million, becoming the epicenter of the derivatives bloodbath. Longs suffered disproportionate losses at $395.5 million versus $155.8 million for shorts—a stark reminder of leverage risks during periods of extreme volatility.
