Bitcoin Slips Below $120K After Trump’s Tariff Warning—But a Rally Might Still Be in Play
Bitcoin (BTC) has pulled back from its record high of $123,091, dropping to just under $120,000 following heightened geopolitical tensions. The retreat came after U.S. President Donald Trump announced plans to impose 100% tariffs on Russia within 50 days if the conflict in Ukraine continues. This statement was made during a joint press event with NATO Secretary General Mark Rutte, where Trump also confirmed a new weapons agreement with NATO allies, aiming to rapidly supply arms to Ukraine.
After reaching the $123K milestone, Bitcoin’s value declined to $120,124 before slipping further to around $119,900. Market analysts view this correction as a potential short-term top, though many believe the broader bullish trend may resume soon—especially if pro-crypto legislation is passed this week. Some projections suggest BTC could target $136K as the next major resistance level.
On-chain data from CryptoQuant revealed a surge in exchange netflows following the price peak, signaling that some investors were locking in profits. This kind of activity often coincides with local tops and suggests that the market may either correct or consolidate in the near term. The Crypto Fear & Greed Index also climbed to 70, indicating elevated optimism, though such levels may reflect overbought conditions and precede sell-offs.
Meanwhile, derivatives data shows continued interest in Bitcoin trading. Open interest in BTC futures rose 3.87% to $87.95 billion, according to Coinglass, while trading volume skyrocketed 146.88% to over $152 billion—suggesting strong, albeit potentially overstretched, bullish momentum.
Trump’s tariff announcement included further threats: a 30% duty on imports from Mexico and the EU, as well as a 50% tariff on copper and various raw materials from other nations. This sweeping trade stance has sparked uncertainty across global markets—though for Bitcoin, the reaction may only be temporary, with room for further gains ahead depending on political developments and regulatory support.
