Bitcoin (BTC) Crashes 4.5%, Bouncing Below $100K After Trump Threatens EU with 50% Tariffs.

This sudden crash in response to Trump's tariff announcement wiped out $638 million in leveraged positions, according to CoinGlass data.

Bitcoin (BTC) price crashed 4.5% in 24 hours, falling below $110,000 after President Trump threatened the EU with 50% tariffs, sparking a potential trade war revival. The sell-off began ahead of Friday’s market open and accelerated during the New York session.

This sudden shift in trade policy brought the biggest crypto down to test $106,764 – a key Point of Control (POC) level, according to the Time Price Opportunity Chart for Bitcoin. The aforementioned support was created on May 21, where Bitcoin price saw a stark rise in demand, catalyzing a 4.80% rally to a new all-time high of $111,866.

For a price level to become a POC, it needs to be tested at least three times with high volume, and ideally, it should be untested. A naked POC is an untested, high-volume level at which massive demand previously catalyzed the underlying asset to soar higher.

At press time, the selling pressure is stabilizing at $106,764, with BTC bouncing 1.15%. However, TPO chart notes three other key levels to watch:

Next, at $104,000, lies the 38.2 Fibonnacci retracement level of the March 2020 low to May 2023 high.

Third, at $98,000, is the lower band of the multi-monthly price channel, which began in November 2022.

Finally, at $91,000, lies the 50 Fibonnacci retracement level of the March 2020 low to May 2023 high.

Bitcoin IV Spikes, Flushes Open Interest

Bitcoin’s Implied Volatility (IV), which had remained subdued during its rally to $100,000, spiked sharply ahead of the crash. The IV surge coincided with the aggregate IV indicator’s sell signal. This was followed by a $1.87 billion drop in Open Interest, suggesting a decent flush of leveraged positions.

A 9.5% move in Bitcoin price between May 19 and 25 saw Open Interest rise $6.26 billion, showing investor interest and leverage. However, the recent drop shows that OI dropped 1.87 billion, which is relatively low considering that BTC retraced 50% of the 9.5% move. This shows lingering leverage positions are still in play.

For a deeper dive into BTC’s macro outlook, read our Bitcoin price prediction 2025 to 2030.

Frequently Asked Questions (FAQs)

1. What caused the recent Bitcoin price crash?

2. What are the key Bitcoin price levels to watch?

3. How did the crash affect Bitcoin's Implied Volatility (IV)?