Bitcoin Plunges 4% After Trump's 50% EU Tariff Announcement

Bitcoin (BTC) experienced a dramatic collapse on Friday following President Trump's announcement of a 50% tariff on all goods imported from the European Union. This move, driven by frustration with ongoing trade talks, led to a significant drop in the cryptocurrency's value. Bitcoin plummeted to a low of $106,816 before recovering on Saturday and during the ongoing session.

The sudden decline in Bitcoin's price resulted in substantial losses for crypto bulls, with over $500 million wiped out as the cryptocurrency tumbled below $110,000. The broader crypto market mirrored BTC’s decline, with significant losses reported in futures tracking Ethereum (ETH), Solana (SOL), Ripple (XRP), and Dogecoin (DOGE). Bitcoin futures registered losses of around $181 million, while ETH futures saw losses of around $142 million, with altcoins adding another $100 million in liquidations. This wave of liquidations indicated panic selling and suggested a potential market turning point and an imminent price reversal.

An analyst has made a bold prediction that Bitcoin could surge to an astonishing $325,000 peak. The analyst based this prediction on a technical analysis chart spanning BTC’s movements from 2009 to 2025, applying the Elliot Wave Theory on a High Time Frame and tracking a five-wave impulsive structure. According to the analysis, Bitcoin is currently in Wave 5, the last wave of this cycle, suggesting the market is on the verge of a final parabolic price increase. The analyst predicts that Bitcoin could reach this target as early as July 2025, a little over a month away.

Bitcoin is attempting to recover after Friday’s sudden decline, triggered by President Trump threatening to impose 50% tariffs on all goods imported from the European Union. The drop saw BTC plunge to an intraday low of $106,816, leading to the liquidation of $594 million in crypto derivatives. As a result, crypto bulls lost $507 million, while shorts accounted for the remaining $87 million. The pullback occurred despite BTC registering increased institutional interest and increased ETF inflows. Funding rates also signal caution as traders wait on the sidelines. Glassnode data revealed that despite BTC trading above $108,000, funding rates have been relatively muted at 0.0079%. While short-term sentiment indicates caution, on-chain data reveals support emerging at lower levels.

According to Glassnode, over 420,000 BTC has a cost basis around the $94,000 level, forming one of the strongest support zones in the cycle. This massive accumulation suggests strong buying interest at this price level. BTC started the previous week in the red, dropping 1.04% on Monday before rebounding on Tuesday and settling at $104,123. The price was back in the red on Wednesday, falling 0.53% and settling at $103,568. BTC fell to an intraday low of $101,459 on Thursday but recovered to register a marginal increase and settle at $103,816. Price action was bearish on Friday and Saturday as the price declined marginally to $103,235. However, BTC recovered on Sunday to register an increase of over 3%, cross $106,000 and settle at $106,489.

BTC plunged to an intraday low of $102,135 on Monday as the week got off to a bearish start. The price recovered from this level to reclaim $105,000 and settle at $105,572. Sentiment changed on Tuesday as the price registered an increase of 1.21% and settled at $106,854. Bullish sentiment intensified on Wednesday, with the price rising 2.57% to cross $109,000 and settle at $109,603. BTC surged to a new all-time high on Thursday, rising to $111,917 before settling at $111,582. However, markets turned bearish after President Trump threatened to impose 50% tariffs on goods from the EU. As a result, BTC plunged nearly 4% to $107,356. The price recovered on Saturday, registering a marginal increase and settling at $107,855, but not before reaching an intraday high of $109,567. The current session sees BTC marginally up as it looks to build momentum and reclaim $110,000.