Bitcoin Dips 4% as Trump’s Tariff Threat on EU Triggers $300M in Crypto Liquidations

In today’s crypto news, Bitcoin’s record-breaking rally hit a wall Thursday as President Trump reignited trade war fears with a threat to slap the European Union with a 50% tariff. The market didn’t take it well. “Our discussions with them are going nowhere! Therefore, I am recommending a straight 50% Tariff on the European Union, starting on June 1, 2025,” said Trump.

Source: Truth Social

BTC plunged as much as 4% to a session low of $107,367, before clawing back to hover just under $110,000 — a level that now flips from support to resistance. Bitcoin has since dropped back down to $108,445. The sharp downturn wiped out over $300 million in leveraged crypto positions within hours, according to data from CoinGlass, with total 24-hour liquidations exceeding $500 million.

Bitcoin dropped to $108,436, Source: Brave New Coin Liquid Index

The headline also sparked a knee-jerk selloff across risk assets. U.S. equities opened in the red, with the S&P 500 and Nasdaq dropping 1% and 1.2% respectively. Bitcoin, often trading like a high-beta tech stock, mirrored the move with a swift downward lurch. Altcoins also fell back as the Crypto Heat Map shows.

A red day in the market, as momentum cools, Source: Coin360

The reaction underscores Bitcoin’s sensitivity to macroeconomic uncertainty, especially during periods of heightened leverage and overheated sentiment. Despite recently hitting a new all-time high of $111,800, on-chain data from Glassnode reveals that short-term holders (STHs) — essentially the fast-money crowd — have already taken $11.6 billion in profits in the past month. At one point, daily realized profits peaked at $747 million.

That kind of activity suggests a cooling-off period may be due.

“The market’s been running hot,” said Daan Crypto Trades, another prominent analyst. “We’ve got compression breaking here, and Trump just lit the fuse. Now we wait to see where BTC finds its footing.”

While long-term bulls remain confident, the immediate question is whether Bitcoin can hold above key technical levels to maintain momentum. For now, $110,000 becomes the battleground.

As geopolitical risk resurfaces and traders brace for potential retaliatory measures from the EU, crypto’s trademark volatility is once again on full display. Whether this is just a temporary pullback or the beginning of a broader correction will depend on how markets digest the evolving tariff narrative in the days ahead.

Stil, for those traders wondering what crypto they should buy now, or if this is a good time to buy Bitcoin, Ari Paul’s post from two days suggests that this might be a Bitcoin dip worth buying. 

Ari Paul says dips are for buying, Source: X

Despite the current dip, the crypto community continues to forecast major upside for Bitcoin, with several analysts issuing bullish Bitcoin price predictions for 2025. Here’s a breakdown of the top expert projections for where BTC could be headed:

Crypto trader Titan of Crypto remains confident that Bitcoin could reach $135,000 in 2025, based on Fibonacci extension levels. He notes that the $135K to $140K Bitcoin price zone remains a technically valid target if current bullish momentum holds.

Legendary trader Peter Brandt, famous for spotting long-term chart patterns, believes Bitcoin could hit $125,000 to $150,000 by August 2025. While he downplays the significance of BTC setting new highs in bull cycles, he says the market is “on track” for a major top in that range.

Technical analyst Gert van Lagen offers one of the most aggressive Bitcoin forecasts, calling for a surge to $300,000–$320,000. He references a 4-year bullish megaphone pattern breakout, suggesting BTC could rally 170% to 190% more from current prices, driven by Elliott Wave Theory.