Bullish bets in the crypto market hit a hefty snag over the past 24 hours, with traders seeing over $500 million evaporate as Bitcoin slid to $108,600. This jarring shift followed President Donald Trump’s fresh volley of tariff threats targeting European imports and Apple products—a move that rippled across global markets, sparking a wave of liquidations and undermining recent cryptocurrency gains.
Calm Shattered: Volatility Strikes Back
Bitcoin, which had been riding high above $111,000, saw its gains wiped out in a matter of hours, rattling investor confidence. This sudden downturn wasn’t limited to Bitcoin alone. Futures tracking Ethereum (ETH), Solana’s SOL, XRP, and Dogecoin (DOGE) mirrored Bitcoin’s descent, each suffering losses ranging from $30 million to over $100 million as traders scrambled to offload positions.
“The market was bracing for a quiet weekend, buoyed by ETF inflows and institutional interest,” noted Jake Feldman, a crypto analyst with Blockchain Insights. “Instead, Trump’s tariff threats blindsided everyone, injecting a dose of volatility right when it seemed like the waters were calming.” This echoes previous instances where Bitcoin Traders Eye Breakout to New Highs as Trump Says Tariff Deals Progressing, highlighting the market’s sensitivity to geopolitical developments.
In the futures market, Bitcoin bore the brunt with approximately $181 million in losses, while Ethereum futures weren’t far behind, accounting for nearly $142 million. Altcoins added another $100 million to the liquidation tally, with SOL, DOGE, and XRP particularly hard hit.
The Liquidation Cascade: A Market on Edge
The largest single liquidation was a striking $9.53 million BTC-USDT swap on OKX, according to CoinGlass data. Liquidations of this magnitude often indicate market extremes—an overreaction, perhaps, that might signal the cusp of a price reversal.
“When a trader can’t meet margin requirements, exchanges step in to liquidate positions, and that’s what we’re seeing in bulk,” explained Laura Chen, a risk management expert at CryptoGuard. “These cascading liquidations often exacerbate volatility, creating a cycle of panic selling that can quickly spiral.”
This market upheaval comes at a precarious time. Bitcoin was beginning to gain traction, with some traders eyeing $120,000 as the next milestone—a target now seemingly distant as trade tensions stir uncertainty. Previously, optimism was high as Bitcoin Jumps Above $97K as Traders Optimistic U.S.-China Trade Deal Possible, showing how quickly sentiment can shift.
Historical Context and Future Outlook
This isn’t the first time the crypto market has been rocked by external geopolitical tensions. In the past, similar tariff announcements have led to abrupt market swings, underscoring the fragile interdependence of global markets and digital assets. As Bitcoin dipped, the broader crypto complex hesitated, raising questions about the resilience of current bullish trends.
“Traders are spooked,” remarked Alex Monroe, a senior strategist at Digital Coin Ventures. “Heading into June 2025, the focus will be on how these macroeconomic pressures play out, and whether Bitcoin can recapture its upward momentum.”
What happens next? Well, it’s anyone’s guess. The market’s reaction to geopolitical developments will be closely watched, particularly as traders weigh the potential for more volatility against a backdrop of growing institutional interest.
As the dust settles, one thing’s clear: the cryptosphere remains as unpredictable as ever, teetering between bullish optimism and bearish caution. With the macro environment now destabilized by renewed trade war fears, the coming weeks could prove pivotal in determining the crypto market’s direction.
Source
This article is based on: Crypto Bulls Lose $500M as Bitcoin Hovers Around $108K After Trump’s Tariff Threats
Further Reading
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Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
