Gold hits record $4,660 as Bitcoin tumbles $4,000 after US markets open
Gold surged to a new all-time high of $4,660 per ounce as traders fled to safe-haven assets following US policy/tariff news, while Bitcoin plunged roughly $4,000 within an hour — dropping to about $92,000 — after approximately $500 million of leveraged long positions were liquidated. Silver also rallied, reaching $94/oz and breaking records amid broad metals strength. The moves followed news that President Trump announced a 10% tariff on eight EU nations, stoking risk-off sentiment across markets. The crypto volatility saw rapid deleveraging: one report cited $500 million in long liquidations, while another noted $140 million in bearish bets wiped out during related price swings. The episode highlights heightened sensitivity of crypto markets to macro and geopolitical shocks and the amplified effects of leverage on intraday price swings.
Bearish
The immediate market reaction is bearish for crypto. A sharp, rapid $4,000 drop in Bitcoin driven by large leveraged long liquidations indicates forced selling and elevated short-term downside risk. Geopolitical news (new tariffs) triggered a risk-off move, boosting safe-haven demand for gold and silver while draining risk appetite from crypto. Historical parallels include 2021–2022 episodes where macro shocks and headlines caused sudden crypto drawdowns amplified by leverage (e.g., March 2020 COVID crash, 2022 rate-hike driven liquidations). Short-term impact: increased volatility, tighter liquidity, possible continuation of downward pressure as deleveraging cascades and stop-losses trigger. Traders should expect wider spreads, reduced depth, and risk of further flash moves. Long-term impact: fundamentals of Bitcoin aren’t directly altered by tariffs, so once macro risk sentiment stabilizes, recovery is possible; however, repeated macro shocks and persistent use of leverage could keep realized volatility higher and slow price appreciation. Risk management (reduce leverage, use smaller position sizes, monitor liquidation levels) is prudent for traders.