Trump Tariffs Fuel Bitcoin Volatility, $2.2B Liquidated
Bitcoin volatility spiked after U.S. President Donald Trump announced 100% tariffs on Chinese imports and China imposed rare earth export restrictions. This sharp swing in Bitcoin volatility sent prices tumbling from around $113,000 to as low as $102,000 on futures markets, triggering over $2.2 billion in leveraged BTC liquidations and more than $9 billion across crypto markets within 24 hours.
Swan Bitcoin CEO Cory Klippsten warned of continued instability as traders with leveraged positions face further forced sales. Ray Salmond of Cointelegraph highlighted a liquidity cluster between $102,000 and $97,000, echoing similar sell-offs in April and February. Despite the turbulence, Bitwise strategists Juan Leon and Matt Hougan view the dip as a prime buying opportunity.
Meanwhile, Morgan Stanley expanded its crypto services, enabling clients to trade BTC, ETH and SOL on its eTrade platform and offer crypto funds through advisors. This move signals growing institutional adoption amid heightened market volatility.
Bearish
The announcement of 100% tariffs created significant bearish pressure on Bitcoin, with rapid forced liquidations wiping out over $2.2 billion in BTC positions. This intensifies short-term volatility and risk-off sentiment, likely driving further downward moves until key support levels hold. However, analyst views of a buying opportunity suggest potential stabilization if institutional demand, highlighted by Morgan Stanley’s expanded services, returns. Overall, the immediate price impact is bearish, although the long-term outlook remains positive.