Rebecca Cruz Bitcoin faces tariff turbulence as Trump’s 100 percent import duties on China trigger a sharp market correction. Analysts see short term volatility but long term opportunity.
Bitcoin faces tariff turbulence as Trump’s import plan rattles markets
Bitcoin faced significant turbulence this week after US President Donald Trump’s fresh tariff announcement on Chinese imports shook global markets. The sudden move to impose a 100 percent duty on goods from China triggered a wave of panic across both traditional and crypto markets, leading to billions in liquidations. As Bitcoin fell sharply toward the $102000 mark, analysts warned that the cryptocurrency might continue to experience volatility in the short term.
Swan Bitcoin CEO Cory Klippsten described the sell off as “classic macro whiplash” that could drag Bitcoin around before it stabilizes. He noted that the broader risk off mood following Trump’s announcement had sparked a wave of panic among traders who were rushing to de-risk their positions. According to him, Bitcoin could see a temporary pullback before finding new support and resuming its long term trajectory.
Bitcoin volatility surges as $8 billion wiped out in crypto liquidations
The market chaos led to one of the largest liquidation events in recent months. Data from CoinGlass revealed that more than $2.19 billion in Bitcoin long positions were wiped out within 24 hours. Across the entire crypto market, long liquidations totaled over $8 billion as traders faced extreme volatility.
Ray Salmond, head of markets at Cointelegraph, explained that the tariff news took many leveraged traders by surprise. The abrupt policy announcement caused dislocations between major exchanges, with Bitcoin’s spot pair on Coinbase dropping to $107000 while perpetual futures on Binance crashed to $102000. This gap, he said, showcased how cascading liquidations can completely wipe out stop losses when sentiment flips suddenly.
Salmond referenced heatmap data from Hyblock showing that nearly all downside liquidity for Bitcoin long positions was absorbed between $102000 and $97000, indicating that much of the leverage had been flushed from the system. Such scenarios, while painful in the short term, often reset the market for a healthier recovery phase.
Trump tariffs echo past Bitcoin corrections
This is not the first time Bitcoin has been caught in the crossfire of Trump’s trade policies. Earlier in April, a similar round of tariff threats sent Bitcoin tumbling as fears of a recession rippled across financial markets. When the first executive order was signed on February 1 imposing import duties on China, Canada, and Mexico, Bitcoin slipped below $100000 before staging a rebound weeks later.
Analysts say these tariff driven sell offs underline how sensitive Bitcoin remains to macroeconomic sentiment even as it grows in institutional adoption. While many investors view Bitcoin as a hedge against inflation and geopolitical risk, its short term correlation with equities often resurfaces during times of market stress.
Analysts see opportunity amid Bitcoin’s tariff turbulence
Despite the sharp pullback, several Bitcoin analysts remain optimistic. Juan Leon, senior investment strategist at Bitwise Invest, said that history suggests the best times to accumulate Bitcoin are often when it is being dragged down by broader macro factors. He emphasized that the recent dip could present a valuable entry point for long term holders who believe in Bitcoin’s fundamental strength.
Bitwise Invest chief investment officer Matt Hougan echoed this sentiment, reminding his followers that buying during market fear rarely feels comfortable but often delivers strong returns over time. He urged investors to stay disciplined and view such corrections as part of Bitcoin’s natural market cycle.
Cory Klippsten also reaffirmed that macro driven dips tend to flush out over leveraged traders and weak hands, paving the way for stronger accumulation phases. He expects Bitcoin to regain stability once the panic subsides and liquidity normalizes.
What Bitcoin traders can expect next
In the coming days, market analysts expect Bitcoin to remain influenced by headlines around the Trump tariffs and broader risk sentiment. If equity markets continue to decline, Bitcoin may experience additional price swings before finding firm support. However, the long term outlook remains constructive as institutional interest and adoption continue to strengthen.
The current Bitcoin tariff turbulence highlights the delicate balance between global politics and digital asset markets. As uncertainty lingers, experienced investors are watching key support zones closely while positioning themselves for the next potential leg upward.
Disclaimer: Parts of this article were generated with the assistance from AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards.
