Bitcoin slides toward $107K as Trump’s EU tariff threat rattles markets—Can BTC hold support?
Bitcoin experienced sharp volatility at the start of Wall Street trading on May 23, with rapid liquidations following a burst of negative headlines.
BTC tumbles after Trump blasts stalled EU negotiations
According to Cointelegraph Markets Pro and TradingView data, BTC/USD dropped to $107,367 on Bitstamp before staging a modest bounce. The intraday decline reached up to 4%, triggered by U.S. President Donald Trump’s latest comments regarding trade tensions with the European Union.
“Our discussions with them are going nowhere!” Trump wrote on Truth Social. “Therefore, I am recommending a straight 50% Tariff on the European Union, starting on June 1, 2025.”
U.S. equities quickly reacted—both the S&P 500 and Nasdaq Composite fell 1% and 1.2%, respectively, at the open.
Crypto traders weren’t surprised by the market’s knee-jerk response.
“Classic long leverage flush and spot de-risking,” noted trader Skew on X. “Another headline-driven move.”
CoinGlass reported that nearly $350 million in long positions were liquidated within just four hours, with total 24-hour crypto liquidations surpassing $500 million.
Daan Crypto Trades added, “This is the breakout from the previous compression phase, sparked by Trump. Global markets clearly dislike the renewed trade friction. Now we watch to see where Bitcoin stabilizes and how it behaves relative to equities with trade risk back on the table.”
Macro analyst The Kobeissi Letter noted the policy dilemma facing the Trump administration:
“Too many tariffs risk unraveling basis trades, too few risk stoking inflation expectations,” they wrote on X. “Trump now needs to strike a balance—preserve trade pressure while avoiding a surge in yields, and all without Fed rate cuts.”
With the Federal Reserve holding firm on interest rates despite easing inflation, risk assets like Bitcoin remain vulnerable.
Meanwhile, traders are eyeing critical technical levels for support.
“We must defend the green zone,” urged trader Crypto Caesar, referencing a key demand area just below $110K.
