Bitcoin News Today: Trump Tariffs and Leverage Trigger $19B Crypto Collapse: Bitcoin Bounces at $105K

Bitcoin closed the week at $115,000 after a sharp selloff triggered by escalating U.S.-China trade tensions and President Donald Trump's announcement of a 100% tariff on Chinese imports, which sent shockwaves through global financial markets. The cryptocurrency plummeted to a low of $105,617 on Friday, driven by a cascade of forced liquidations across exchanges. Data from CoinGlass revealed $18.28 billion in total liquidations, with Bitcoin alone accounting for $1.83 billion in losses during the crash Economic Times^[1]. The selloff accelerated during the weekend, with leveraged positions collapsing as liquidity dried up, pushing the price to as low as $102,000 on some platforms TheStreet.com^[2].

The crash highlighted the fragility of leveraged positions in crypto markets. Over $19 billion in value vanished within 24 hours, with more than 1.6 million traders affected. Ethereum and altcoins like Solana and Cardano saw even steeper declines, with altcoin indices dropping up to 40% in minutes. The volatility underscored the risks of high leverage, as traders rushed to liquidate positions amid panic. Hyperliquid exchange reported a single $87.53 million liquidation in BTC/USDT during the turmoil CoinGlass^[3].

Technical analysis suggests the $105,000 level served as a critical support, preventing further downward momentum. Bitcoin's price rebounded to $115,128 by the week's close, but bears remain dominant as long as the price stays below $118,350. On-chain data from CryptoQuant indicated declining exchange inflows, signaling reduced selling pressure as holders retained assets off exchanges. However, blockchain analytics firm Glassnode warned that Bitcoin had slipped below the 0.95 Cost Basis Quantile, a historical indicator of profit-taking and potential sell-offs CryptoQuant.com^[4].

The crash was exacerbated by macroeconomic factors, including a strengthening U.S. dollar and regulatory uncertainty. The S&P 500 and Nasdaq also experienced significant declines, reflecting broader risk-off sentiment. Analysts attributed the crypto sell-off to the interplay of geopolitical tensions, overleveraged positions, and thin liquidity in markets. Wiston Capital's Charlie Erith noted that the sell-off disproportionately impacted altcoins, with Bitcoin's market share rising as smaller tokens absorbed "immense technical damage" Coindesk^[5].

Looking ahead, market participants are monitoring key levels. A Fibonacci retracement analysis identifies $118,350 as a critical resistance for bulls to reclaim, with a break above this level potentially signaling renewed bullish momentum. Conversely, a sustained close below $105,000 could trigger a deeper correction toward $96,000, according to Bitcoin Magazine's Ethan Greene Bitcoin Magazine^[6]. The broader crypto market, now valued at $3.7 trillion, remains volatile, with the Altcoin Season Index at 37, indicating continued Bitcoin dominance.

While the immediate outlook remains bearish, some analysts view the crash as a purge of excessive leverage rather than a structural collapse. Institutional buying and easing trade tensions could support a recovery. However, risks persist, including further geopolitical shocks or regulatory actions. The upcoming U.S. Federal Reserve decisions and China's response to Trump's tariffs will be pivotal in shaping investor sentiment.