Bitcoin has plunged 4.5% in the last 24 hours as it fell to $108,000 after Trump threatened to hit the EU with tariffs. The sharp sell-off wiped out around $638 million in leveraged positions, as per data from Coinglass. Trump said that he is not going to make a deal with the EU but hinted that he might delay the tariffs if the EU builds factories in the US.
Trump recommended a 50% tariff on EU goods starting June 1, 2025, unless the products are made in the U.S.
The sharp move came after a period of low volatility, and Trump’s comments triggered panic across global markets. Top altcoins like Ethereum, XRP, Solana, Dogecoin, and Cardano were also hit hard as they dropped 3-6%. According to CoinGlass, nearly $350 million in crypto positions were liquidated in just 4 hours, with over $500 million wiped out in 24 hours.
Crypto stocks also slid today as BTC Treasury companies like Microstrategy and Semler Scientific dropped around 6%. Japan’s Metaplanet fell even harder, down 24%. Despite Bitcoin hitting a fresh all-time high this week, crypto stocks did not keep up with the gains.
Is Trump In a Tough Spot?
Commenting on the big-picture market situation, The Kobeissi Letter said Trump is in a tough spot. If he pushes tariffs too hard, it could cause market trades to fall apart. But if he backs off too much, then the inflation expectations could rise again.
Trump has to find a way to keep tariffs high enough to show strength but should also avoid pushing up treasury yields. And he has to do this without help from the Fed, which isn’t lowering interest rates yet.
This Cycle Is Different, Say Analysts
Analyst Benjamin Cowen says Bitcoin’s recent drop looks like the typical dip that follows a golden cross. He expects the pullback to last a few days with a possible bounce coming next week.
Experts note that this crypto cycle is way more complex and different from the past ones. So, there’s no reason to expect the rest of it to follow the same old 4-year pattern. Analyst Michaël van de Poppe says that investors should stay open-minded over the next 1-2 years as the market could bring surprises.
He believes that now, the chances are much higher of a longer cycle with Bitcoin possibly hitting $400K–$600K by 2026/2027 and altcoins climbing even higher.
