Bitcoin (BTC) price action dives up to 4% before recovering with $110,000 now a resistance level.

Bitcoin (BTC) saw flash volatility into the May 23 Wall Street open as news headlines liquidated longs.

Bitcoin (BTC) price action saw flash volatility into the May 23 Wall Street open as news headlines liquidated longs.

Bitcoin drops 4% as Trump says EU talks ‘going nowhere’

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD hitting lows of $107,367 on Bitstamp before rebounding.

This marked daily losses of up to 4% as markets reacted to comments from US President Donald Trump over tariffs on the European Union.

“Our discussions with them are going nowhere!” Trump wrote in a post on Truth Social.suggesting that he may take further action.

US stocks reacted immediately at the open, with the S&P 500 and Nasdaq Composite Index down 1% and 1.2%, respectively, at the time of writing.

Reflecting on the latest developments, crypto market participants were unsurprised, given the existing precedent for tariff-related volatility.

“Nice aggregate flush of long leverage & de-risk selling from spot,” popular trader Skew summarized in a post on X.

Data from monitoring resource CoinGlass put 4-hour liquidations at nearly $350 million, with the 24-hour tally at over $500 million.

“There's the break from the compression with a push from Trump. Markets worldwide obviously not liking the news,” fellow trader Daan Crypto Trades continued.suggesting that the Federal Reserve was likely to respond accordingly.

Commenting on the macro outlook, trading resource The Kobeissi Letter suggested that the Trump administration was caught between a rock and a hard place.

“We have now learned: Too much tariff pressure causes the basis trade to unwind. Too little tariff pressure causes inflation expectations to rise,” it wrote in part of an X response.

Kobeissi referred to the Federal Reserve’s unwillingness to hasted interest rate cuts despite declining inflation — a key ingredient in further risk-asset upside.

Related: Bitcoin buyer dominance at $111K suggests ‘another wave’ of gains

Elsewhere, traders eyed key BTC price levels to preserve going forward as the market sought a rebound.

“We need to hold the green zone,” trader Crypto Caesar argued alongside a chart showing an area of interest immediately below $110,000.

Another trader, Poseidon, acknowledged the comparative lack of resistance above spot price, keeping the door open to easy upside.

Don't forget: above here, it's nothing but thin air. No resistance in sight.$BTC

"Front ran $110K tag, Skew continued alongside a chart of order book liquidity concentrations.