The price of Bitcoin plummeted to a low of $107,385 on Friday, as global stock markets and cryptocurrencies endured a significant drop. This downturn followed a controversial tariff proposal from former President Donald Trump, which triggered widespread concern among investors.
Bitcoin Prices Decline Alongside Stock Market
Bitcoin (BTC) fell more than 2.7% on Friday, hitting a low of $107,385 as the cryptocurrency mirrored the downward trend observed in Wall Street following Trump’s announcement of a proposed 50% tariff on European Union products. As global stock markets reacted, Bitcoin dipped below the psychological threshold of $110,000.
However, as the Dow Jones Industrial Average experienced a slight recovery, Bitcoin found support and was briefly trading above $109,600.
Price chart of Bitcoin by CoinMarketCap
Major Liquidations Amid Market Turmoil
During this 24-hour period, liquidations surpassed $550 million, driven mainly by long positions, which accounted for over $395 million in liquidations. Following Trump’s announcement on Truth Social, approximately $309 million in long positions were liquidated within hours. In contrast, short positions saw around $156 million in liquidations during the same timeframe.
At the time of writing, Bitcoin had seen daily transaction volumes dip by 30% to about $65.5 billion, while its market capitalization fluctuated around $2.17 trillion.
Trump’s Controversial Tariff Proposal
On Friday, former President Donald Trump expressed his dissatisfaction with the progress of U.S.-EU trade negotiations on his Truth Social account. Trump described the European Union as “difficult to deal with,” noting that discussions have stalled. He announced a proposed “50% tariff” on EU goods, effective June 1, 2025, in response to the EU’s trade practices.
“The European Union, formed primarily to exploit the United States in trade, has been very difficult to handle. Their powerful trade barriers, absurd penalties against American businesses, and more have contributed to a trade deficit with the U.S. exceeding $250 billion per year, a totally unacceptable figure,” Trump stated.
Bitcoin’s Recovery Attempts
The tumultuous market conditions following Trump’s announcement prompted a strong reaction among both the stock market and cryptocurrencies, including Bitcoin, which had previously reached an all-time high above $111,000. Despite the setback, the cryptocurrency regained some ground, trading above $109,000 and aiming to reclaim the $110,000 level.
Investor Anthony Pompliano suggested that retail investors are likely to seize the opportunity to buy the dip, a trend observed during previous tariff-related sell-offs.
Every time the market dumps because of tariff threats, retail investors are going to buy the dip. Law of the universe at this point.
— Anthony Pompliano 🌪 (@APompliano) May 23, 2025
At the time of this report, Bitcoin was trading at approximately $109,692.
