Swan Bitcoin CEO Cory Klippsten mentioned that Bitcoin’s price instability may persist after the cryptocurrency briefly dropped to $102,000 on Friday, following US President Donald Trump’s declaration of a 100% tariff on Chinese imports.
“If the wider risk-off sentiment continues, Bitcoin could be affected further before it finds support and begins to decouple again,” Klippsten told Cointelegraph on Friday.
Klippsten cautioned that Bitcoin enthusiasts should brace for some volatility in the coming days. “Macro-driven dips like this generally flush out leveraged traders and weaker hands, resetting positioning for the next surge,” he said.
$8 billion erased from crypto market
In the last 24 hours, around $2.19 billion in Bitcoin (BTC) long positions have been liquidated, contributing to a total of $8.02 billion in long liquidations throughout the broader cryptocurrency market, according to CoinGlass.
“There’s a bit of panic in the markets right now, classic macro whiplash. Trump and China are exchanging tariff threats, equities are down, and traders are rushing to lower their exposure,” Klippsten added.
Cointelegraph head of markets Ray Salmond remarked that leveraged traders “were completely caught off guard” as Trump’s tariff announcement “sent shockwaves through the crypto market.”
Salmond explained that the disparity in Bitcoin’s price between crypto exchange Coinbase, where the BTC/USD pair dropped to $107,000, and crypto exchange Binance perpetual futures, where the BTC/USDT pair plummeted to $102,000, “highlights the severity of the cascading liquidations and how stops were thoroughly invalidated.”
Salmond referred to liquidation heatmap data from Hyblock, which shows “virtually all downside long liquidity absorbed, with a liquidation cluster remaining between $102,000 and $97,000.”
This isn’t the first instance of Bitcoin experiencing a sharp decline after a Trump tariff announcement. In April, Trump’s initial tariff announcements caused major ripples in the crypto markets and ignited recession fears.
On Feb. 1, when Trump signed an executive order to impose import tariffs on products from China, Canada, and Mexico, Bitcoin fell below $100,000.
Bitcoin analysts remain optimistic
Several Bitcoin analysts suggest that the recent price drop could offer a buying opportunity.
Bitwise Invest senior investment strategist Juan Leon mentioned in a post that “the best time to buy BTC has often been when it is being dragged down by broader market influences.”
Related: Bitcoin Mayer Multiple: BTC price can reach $180K before becoming ‘overbought’
In addition, Bitwise Invest chief investment officer Matt Hougan reminded his 85,900 followers that while many claim they will purchase Bitcoin during a price pullback, they often hesitate when it actually occurs because “the market doesn’t feel good at that moment.”
“It never feels right to buy the dip. The dip arises when sentiment declines. Noting the price can serve as a useful form of discipline,” Hougan said.
Magazine: EU’s privacy-infringing Chat Control bill postponed — but the battle isn’t over
