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Key points:<\/strong><\/p>\n Bitcoin joins risk assets in a knee-jerk reaction to the latest instalment of the US trade war, this time focused on the EU.<\/p>\n<\/li>\n BTC price action dives up to 4% before recovering with $110,000 now a resistance level.<\/p>\n<\/li>\n Traders demand that price holds higher levels going forward to protect bullish momentum.<\/p>\n<\/li>\n<\/ul>\n Bitcoin (BTC<\/a>) saw flash volatility into the May 23 Wall Street open as news headlines liquidated longs.<\/p>\n Data from Cointelegraph Markets Pro<\/a> and TradingView<\/a> showed BTC\/USD hitting lows of $107,367 on Bitstamp before rebounding.<\/p>\n This marked daily losses of up to 4% as markets reacted to comments from US President Donald Trump over tariffs on the European Union.<\/p>\n \u201cOur discussions with them are going nowhere!\u201d Trump wrote in a post on Truth Social.\u00a0<\/p>\n \u201cTherefore, I am recommending a straight 50% Tariff on the European Union, starting on June 1, 2025.\u201d<\/p><\/blockquote>\n US stocks reacted immediately at the open, with the S&P 500 and Nasdaq Composite Index down 1% and 1.2%, respectively, at the time of writing.<\/p>\n Reflecting on the latest developments, crypto market participants were unsurprised, given the existing precedent<\/a> for tariff-related volatility.<\/p>\n \u201cNice aggregate flush of long leverage & de-risk selling from spot,\u201d popular trader Skew summarized<\/a> in a post on X.<\/p>\n \u201cAll driven by headlines once again.\u201d<\/p><\/blockquote>\n Data from monitoring resource CoinGlass<\/a> put 4-hour liquidations at nearly $350 million, with the 24-hour tally at over $500 million.<\/p>\n \u201cThere’s the break from the compression with a push from Trump. Markets worldwide obviously not liking the news,\u201d fellow trader Daan Crypto Trades continued<\/a>.\u00a0<\/p>\n \u201cWill have to see where this settles today and how BTC ends up performing relative to equities now the trade uncertainty is back.\u201d<\/p><\/blockquote>\n Commenting on the macro outlook, trading resource The Kobeissi Letter suggested that the Trump administration was caught between a rock and a hard place.<\/p>\n \u201cWe have now learned: Too much tariff pressure causes the basis trade to unwind. Too little tariff pressure causes inflation expectations to rise,\u201d it wrote in part of an X response<\/a>.\u00a0<\/p>\n \u201cNow, President Trump must find a middle ground to maintain tariffs but also suppress treasury yields WITHOUT Fed cuts.\u201d<\/p><\/blockquote>\n Kobeissi referred to the Federal Reserve\u2019s unwillingness to hasted interest rate cuts despite declining inflation \u2014 a key ingredient in further risk-asset upside.<\/p>\n Related:\u00a0<\/strong><\/em>Bitcoin buyer dominance at $111K suggests ‘another wave’ of gains<\/strong><\/em><\/a><\/p>\n Elsewhere, traders eyed key BTC price levels to preserve going forward as the market sought a rebound.<\/p>\n \u201cWe need to hold the green zone,\u201d trader Crypto Caesar argued<\/a> alongside a chart showing an area of interest immediately below $110,000.<\/p>\n Another trader, Poseidon, acknowledged the comparative lack of resistance above spot price, keeping the door open to easy upside.<\/p>\n Don\u2019t forget: above here, it\u2019s nothing but thin air. No resistance in sight.$BTC<\/a> pic.twitter.com\/ugQEGQIcpD<\/a><\/p>\n\n
Bitcoin trips as Trump says EU talks \u201cgoing nowhere\u201d<\/h2>\n
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