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In a delightful display of market theatrics, Bitcoin, that capricious creature, joins the ranks of risk assets, reacting with a melodramatic flair to the latest episode of the US trade war, now featuring the EU as its unsuspecting co-star.
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BTC‘s price action took a nosedive of up to 4% before performing a miraculous recovery, with the illustrious $110,000 now standing as a formidable resistance level, like a bouncer at an exclusive club.
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Traders, those ever-hopeful romantics, are clamoring for the price to maintain higher levels, lest their bullish dreams be dashed upon the rocks of reality.
On this fateful day, May 23, Bitcoin (BTC) experienced a flash of volatility as Wall Street opened its doors, with news headlines liquidating longs faster than you can say “cryptocurrency.”
Bitcoin trips as Trump declares EU talks “going nowhere”
Data from the ever-reliable CryptoMoon Markets Pro and TradingView revealed that BTC/USD plummeted to lows of $107,367 on Bitstamp before rebounding like a rubber ball on a sugar high.
This marked daily losses of up to 4%, as markets reacted to President Donald Trump’s riveting commentary on tariffs directed at the European Union.
“Our discussions with them are going nowhere!” Trump proclaimed in a post on Truth Social, as if he were narrating a particularly dull soap opera.
“Therefore, I am recommending a straight 50% Tariff on the European Union, starting on June 1, 2025.”
US stocks, in a synchronized dance of despair, reacted immediately at the open, with the S&P 500 and Nasdaq Composite Index down 1% and 1.2%, respectively, as if they were following a script written by a particularly pessimistic playwright.
Crypto market participants, those seasoned veterans of volatility, were unsurprised, given the well-established precedent for tariff-related chaos.
“Nice aggregate flush of long leverage & de-risk selling from spot,” popular trader Skew summarized in a post on X, as if he were commenting on a particularly thrilling game of poker.
“All driven by headlines once again.”
Data from the monitoring resource CoinGlass indicated that 4-hour liquidations reached nearly $350 million, with the 24-hour tally exceeding $500 million, a staggering sum that could make even the most stoic trader raise an eyebrow.
“There’s the break from the compression with a push from Trump. Markets worldwide obviously not liking the news,” fellow trader Daan Crypto Trades mused, as if pondering the mysteries of the universe.
“Will have to see where this settles today and how BTC ends up performing relative to equities now the trade uncertainty is back.”
Commenting on the macro outlook, trading resource The Kobeissi Letter suggested that the Trump administration was caught between a rock and a hard place, a classic dilemma worthy of a Greek tragedy.
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Another trader, Poseidon, acknowledged the comparative lack of resistance above spot price, keeping the door open to easy upside, like a child peeking into a candy store.
Don’t forget: above here, it’s nothing but thin air. No resistance in sight. $BTC
— Poseidon (@CryptoPoseidonn) May 23, 2025
“Front ran $110K tag,” Skew continued alongside a chart of order book liquidity concentrations, as if he were a detective piecing together clues.
“Important level from here for the market to auction above (key for continuation).”
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2025-05-23 18:51