Bitcoin Falls on Tariff Shock: Will It Recover Soon?
- Sammy Salmela
- May 23
- 2 min read
Article with AI Analysis
Date: May 23, 2025
Source: Cointelegraph
Introduction
Bitcoin isn’t just numbers on a screen. For many, it’s a symbol of freedom, future wealth, and an escape from traditional systems. But on May 23, this symbol took a hit tumbling nearly 4% in a single trading day. Why? One headline.
President Trump’s call for a 50% tariff on the European Union sent shockwaves through markets. The result: a $350 million liquidation in crypto and new pressure on Bitcoin’s key support levels.
Markets React Swiftly to Trump's EU Tariff Proposal
In a now-viral post on Truth Social, President Trump declared trade talks with the EU "going nowhere", recommending an immediate 50% tariff starting June 1. Wall Street didn’t wait equities fell, and Bitcoin followed suit, dipping to $107,367 before slightly recovering.
Traders were quick to point to the surge in liquidations over $500 million in 24 hours as a classic example of what happens when headlines drive fear and algorithms take over.
Key Price Levels and Market Sentiment
Crypto analysts now look toward the $110,000 mark as critical resistance. If Bitcoin fails to reclaim that level, the short-term bullish momentum might fade. But some optimism remains. With thin resistance above current levels, a bounce is still within reach if sentiment calms.
As trader Skew noted, “Important level from here for the market to auction above.” The pressure is on.
AI-Powered Sentiment Analysis
Our AI analysis of this article revealed:
sentiment_score: 0.48 – Slightly positive; market watchers still hopeful.
Financial Sentiment: 2.28 – Strong financial relevance; important to traders.
Polarity Score: 0.085 – Neutral to mildly positive; cautious optimism.
Subjectivity Score: 0.434 – Balanced analysis with a hint of opinion.
These scores suggest a cautious market tone, with room for recovery if key resistance is broken and
Read More
Read the full article on: https://cointelegraph.com/news/bitcoin-price-drops-4-trump-eu-tariff-talk-liquidates-over-300m
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Disclaimer
This article was generated using AI and reviewed for accuracy. The information presented is for educational purposes only and should not be construed as financial advice. Always consult with a professional before making investment decisions.
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