Trump Tariff Threat Sends Bitcoin Sliding Under $109K

Bitcoin dipped sharply Thursday after former President Donald Trump hinted at renewed tariffs on Chinese electric vehicles, rattling risk assets worldwide. The flagship cryptocurrency tumbled from $113,200 to a low of $108,750 within hours—a 4% slide that underscores how macro-political headlines are still capable of dictating crypto sentiment.

Market overview

At press time, Bitcoin was changing hands at $108,950, down 3.8% on the day. Trading volume spiked to $38.4 billion, the highest 24-hour tally since mid-April, according to CoinGecko data. Investors piled into US dollar–pegged stablecoins like USDT and USDC as a haven, with Tether’s circulating supply jumping 0.5% in 24 hours.

Notably, MicroStrategyadded another 125 BTC to its treasury on May 22, paying an average of $112,400, a stark contrast to the broader market’s knee-jerk reaction. “These high conviction buys show institutional buyers remain undeterred by short-term noise,” commented Glassnode analyst Rafael Schultze-Kraft.

Policy impact

Trump’s social media post suggested tariffs of 25% on imported Chinese EVs could be reinstated as soon as next month—reviving a flashpoint from his 2018 trade war. That prospect sent S&P 500 futures 1.2% lower and prompted a rush out of equities and crypto alike.

J.P. Morgan’s head of digital assets, Nikolaos Panigirtzoglou, noted in a research note that “tariff risk adds another layer of uncertainty, weighing on both traditional and digital markets.” The bank adjusted its year-end Bitcoin forecast to $130,000 from $145,000, attributing the revision to elevated trade tensions and a more hawkish Fed stance.

Meanwhile, the White House has downplayed the comments as “preliminary,” but traders are already repricing odds of additional Fed hikes later this summer. On-chain flows to Chinese exchanges ticked up 12%—a signal some whales are moving assets in anticipation of volatility.

Technical analysis

Bitcoin’s chart reveals support at the $108,000 zone, which has held firm since early May. The 50-day moving average sits at $109,400, while the 200-day average remains at $102,800—levels technical traders say are key for gauging the next directional leg.

RSI and support levels

The Relative Strength Index (RSI) dipped into “oversold” territory—below 30— for the first time since March’s pullback, suggesting a potential bounce. If buyers step in at $108K and push Bitcoin above the 50-day MA, the path to $115K could reopen quickly.

Resistance ahead

On the upside, chartists are eyeing the $112,000–$113,500 zone as a congestion area. A decisive close above that band would likely reignite the bullish momentum that propelled Bitcoin past $120K in early May.

Conclusion

While Trump’s tariff commentary introduced fresh volatility, long-term indicators and institutional demand suggest Bitcoin’s bull trend remains intact. Traders should watch the June 4 Fed minutes and any follow-through posts from the White House for clues on renewed tariffs.

If support holds around $108K and volumes normalize, we could see a retest of $115,000 ahead of month-end. For now, crypto investors brace for headline-driven swings but keep an eye on the bigger macro picture, where dovish Fed pivot talk and ETF inflows could steal the spotlight.

Follow bitcoinist.news on Google News to receive the latest news about blockchain, crypto, and web3.

Follow us on Google News