Bitcoin’s Dramatic Descent: A Tale of Tariffs and Turmoil! 😱💸

by

In the most recent turn of events, the esteemed Bitcoin has suffered a most unfortunate decline of 4.5% within the span of a mere 24 hours, plummeting to the rather alarming sum of $108,000. This calamity has been precipitated by none other than Mr. Trump, who, in a fit of tariff-induced fervor, has threatened the European Union with financial penalties. Such a sharp sell-off has, alas, obliterated approximately $638 million in leveraged positions, as reported by the ever-reliable Coinglass. Mr. Trump, in his characteristic manner, has declared his unwillingness to negotiate with the EU, yet has suggested that he might consider postponing the tariffs should the EU deign to establish factories upon American soil. How generous! 🙄

Indeed, Mr. Trump has proposed a rather audacious 50% tariff on goods from the EU, set to commence on June 1, 2025, unless, of course, those goods are produced within the United States. One cannot help but wonder if he has consulted a fortune teller regarding the timing of such a decree.

This sudden and dramatic movement in the market follows a period of rather unremarkable stability, and Mr. Trump’s remarks have incited a veritable panic across global markets. Not only Bitcoin, but also the illustrious altcoins—Ethereum, XRP, Solana, Dogecoin, and Cardano—have been caught in this tempest, suffering declines of 3-6%. According to CoinGlass, nearly $350 million in crypto positions were liquidated in a mere four hours, with over $500 million disappearing in the span of a day. Truly, a spectacle worthy of a Shakespearean tragedy! 🎭

Moreover, the stocks associated with cryptocurrency have also taken a tumble, with BTC Treasury companies such as Microstrategy and Semler Scientific experiencing a decline of approximately 6%. Japan’s Metaplanet, however, has fared even worse, plummeting by 24%. Despite Bitcoin achieving a new all-time high this very week, the stocks have failed to mirror such triumphs. How curious! 🤔

Is Mr. Trump in a Quandary?

In a rather astute observation, The Kobeissi Letter has remarked that Mr. Trump finds himself in a precarious position. Should he impose tariffs with excessive fervor, he risks causing the very market trades to disintegrate. Conversely, should he retreat too far, the specter of inflation may rear its head once more. A delicate balance indeed!

Mr. Trump must navigate this treacherous terrain, ensuring that tariffs remain sufficiently high to project strength, whilst simultaneously avoiding the inflation of treasury yields. And all this, mind you, without the assistance of the Federal Reserve, which appears disinclined to lower interest rates at this juncture. What a pickle! 🥒

This Cycle Is Unprecedented, Declare the Analysts

Analyst Benjamin Cowen has posited that Bitcoin’s recent decline resembles the customary dip that follows a golden cross. He anticipates that this pullback shall endure for a few days, with a potential rebound on the horizon next week. Fingers crossed! 🤞

Experts have noted that this particular crypto cycle is far more intricate and distinct from those of yore. Thus, there exists no justification for expecting the remainder of this cycle to adhere to the antiquated four-year pattern. Analyst Michaël van de Poppe advises investors to maintain an open mind over the next one to two years, as the market may yet yield unexpected surprises. How thrilling! 🎉

He is of the opinion that the likelihood of a prolonged cycle is significantly heightened, with Bitcoin potentially reaching the lofty heights of $400K–$600K by the years 2026 or 2027, and altcoins ascending even further. One can only hope that such predictions come to fruition! 🌟

Read More

2025-05-24 12:28