**Crypto Bulls Lose $500M as Bitcoin Hovers Around $108K After Trump’s Tariff Threats**

**Crypto Bulls Lose $500M as Bitcoin Hovers Around $108K After Trump’s Tariff Threats**  

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 **Introduction:

A Geopolitical Shockwave Rocks Crypto Markets**  
The cryptocurrency market faced a dramatic correction on May 24, 2025, as former U.S. President Donald Trump’s unexpected tariff threats against the European Union and Apple products triggered a cascade of liquidations. Bitcoin, which had been flirting with record highs above $111,000, plunged to $108,600 within hours, erasing $500 million in leveraged bullish bets and sparking fears of renewed macroeconomic turbulence. This article unpacks the drivers of the sell-off, the broader market implications, and whether Bitcoin’s bullish trajectory remains intact.

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 **The Trigger: Trump’s Tariff Threats and Market Panic** :

 
Late on May 23, Trump announced a proposed 50% tariff on all EU imports and a 25% levy on iPhones manufactured outside the U.S., citing “unfair trade practices” and regulatory imbalances. The move reignited fears of a global trade war, echoing tensions that had previously destabilized markets in the early 2020s.  

**Key Details of the Announcement:**  :

- **50% Tariff on EU Goods**: Effective June 1, 2025, targeting industries from automotive to agriculture.  
- **25% Levy on iPhones**: A direct hit on Apple, whose shares fell 3% in after-hours trading.  
- **Market Reaction**: European equities tumbled, with the Euro Stoxx 50 dropping 2.1%, while U.S. tech stocks faced parallel selling pressure.  

The crypto market, already sensitive to macroeconomic signals, reacted swiftly. Bitcoin’s 4.5% intraday drop mirrored declines in traditional markets, underscoring its growing correlation with global risk assets.  

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 **Liquidation Carnage: $500M Wiped Out in Hours**  :

The tariff announcement triggered a brutal unwinding of leveraged positions. Data from CoinGlass reveals over **$500 million in liquidations** within 24 hours, with long positions (bullish bets) accounting for the majority of losses.  

**Breakdown of Liquidations:**  
- **Bitcoin Futures**: $181 million, driven by a sharp drop from $111,000 to $108,600.  
- **Ethereum Futures**: $142 million, as ETH fell 3-4% to $7,200.  
- **Altcoins**: Solana (SOL), Dogecoin (DOGE), and XRP saw combined losses exceeding $100 million, with SOL dropping 7%.  
- **Largest Single Liquidation**: A $9.53 million BTC-USDT swap on OKX highlighted the extreme volatility.  

Liquidations occur when exchanges forcibly close positions due to insufficient margin, often exacerbating price swings. Analysts noted that the scale of this event suggested a potential market turning point, as panic selling overwhelmed bullish momentum.  

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 **Institutional Context: ETF Inflows vs. Macro Uncertainty**  :

Just days before the sell-off, Bitcoin had been buoyed by institutional optimism. U.S. spot Bitcoin ETFs recorded **$1.9 billion in net inflows** between May 20–22, pushing prices toward the critical $110,000 psychological barrier. However, Trump’s tariffs disrupted this narrative, revealing crypto’s vulnerability to geopolitical shocks despite its maturing market structure.  

**The ETF Paradox**:  
- **Short-Term Volatility**: The sudden drop contrasted with steady ETF demand, which had previously stabilized prices.  
- **Long-Term Confidence**: Analysts argue that institutional interest above $105,000 could provide a price floor, limiting further downside.  

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 **Altcoins in the Crossfire: From Memecoins to Layer 1s**  :

The liquidation wave spared no corner of the crypto market:  
- **Dogecoin (DOGE)**: Fell 6% to $0.227 but found support from retail buyers.  
- **SHIB**: Dropped 5% but held at $0.00001440, supported by over 1.13 million loyal holders.  
- **Solana (SOL)**: Faced $18 million in liquidations amid a broader Layer 1 sell-off.  

Notably, smaller tokens like SUI and Uniswap (UNI) saw steeper declines of 5–7%, reflecting higher risk appetite among altcoin traders.  

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 **The $13.8B Options Expiry: A Looming Catalyst**  :

Bitcoin’s price trajectory now hinges on the **May 30 options expiry**, where $13.8 billion in contracts will settle. This event could amplify volatility:  
- **Call Options Dominance**: Over $4.7 billion in calls (bullish bets) are concentrated between $110,000 and $114,000.  
- **Put Options**: 95% of bearish bets below $109,000 may expire worthless if Bitcoin stabilizes.  

A failure to reclaim $110,000 could force bulls to unwind positions, while a rebound might trigger a short squeeze.  

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 **Market Structure Analysis: Longs vs. Shorts** :

Derivatives data reveals shifting sentiment:  
- **Long-Short Ratio**: Dropped from 54% longs to near parity, signaling uncertainty.  
- **Open Interest**: $79 billion in futures contracts indicates lingering bearish bets, which could fuel a rebound if prices rise.  

High-profile casualties, like a trader’s $1.1 billion leveraged long position on Hyperliquid, underscore the risks of excessive leverage.  

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**Broader Implications: Crypto’s Geopolitical Sensitivity**  :

The sell-off underscores two critical realities:  
1. **Macro-Driven Volatility**: Crypto remains tethered to geopolitical events, despite its decentralized ethos.  
2. **Institutional Maturity**: ETF inflows show growing resilience, but not immunity to external shocks.  

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 **Conclusion: 

Navigating Uncertainty** : 

While Bitcoin’s pullback to $108,000 has rattled short-term traders, the broader bullish trend remains intact. Key factors to watch include:  
- **EU’s Response to Tariffs**: Escalation could prolong market anxiety.  
- **Options Expiry Outcome**: A close above $110,000 may reignite bullish momentum.  
- **ETF Flows**: Sustained institutional demand could offset retail panic.  

As Skew, a prominent crypto analyst, noted: “This is a classic leverage flush—excessive longs getting washed out before the next leg up.” For now, the crypto market’s fate hinges on balancing macroeconomic headwinds with its inherent technological promise.