Bitcoin Tumbles Below $109K Amid Trump’s Trade War Escalation
Market jitters hit crypto as geopolitical tensions flare—because nothing says ’hedge against uncertainty’ like a 10% intraday drop.
Trump’s proposed EU tariffs send traditional and digital assets into a tailspin. Bitcoin’s ’uncorrelated asset’ narrative takes another hit as it dances to macroeconomics’ tune.
Meanwhile, institutional traders shrug—another Tuesday in crypto winter 2.0. At least the blockchain doesn’t charge import duties.
The US President believes the EU was formed for the “primary purpose of taking advantage of the United States” on the trade front, and its multiple barriers have made it difficult for everyday Americans. In fact, he claimed that the Union’s policies have led to a Trade Deficit with the US of more than $250,000,000 per year.
His statement, which went live minutes ago, had a profound and immediate effect on the cryptocurrency markets, as did previous tariff-related announcements.
Bitcoin, which had retraced slightly to $111,000 after yesterday’s all-time high, slumped by a few grand and dipped below $109,000, where it sits at press time as well.
Recall that the asset slumped hard after TRUMP started the trade war against essentially every country a few months back. BTC bottomed on April 7 and 9 at under $75,000, which was a five-month low.
As the economic situation improved globally, even between the US and China, Bitcoin went on the offensive and added over $35,000 in a month and a half to break its January all-time high.
The altcoins have also turned red after Trump’s statement today. His own meme coin is the worst performer on a daily scale, having lost 15% of its value after yesterday’s special dinner.
The total value of liquidated positions has risen to over $450 million, according to CoinGlass. Almost 150,000 over-leveraged traders have been wrecked in the past day.
