Trump Tariff Threats Trigger Crypto Crash, $100B Market Wiped Out

Crypto Market Turmoil: Trump’s Tariff Threats Trigger Massive Sell-Offs

The cryptocurrency market experienced significant volatility following renewed trade war fears sparked by former U.S. President Donald Trump’s tariff threats. According to CoinDesk, over $300 million in leveraged crypto positions were liquidated after Trump proposed a 50% tariff on imports from the European Union and a 25% tariff on iPhones manufactured outside the U.S. This led to a rapid 3% to 4% drop in Bitcoin and major altcoins. Notably, BTC longs accounted for $107 million of the total liquidations, with nearly all liquidations coming from long positions. A trader known as James Wynn, who had opened a $1.1 billion BTC long bet with 40x leverage, is now facing $7.5 million in unrealized losses, with the position at risk of liquidation if BTC falls to $102,000.

“All driven by headlines once again,” noted crypto trader Skew, highlighting the market’s sensitivity to policy news.

These events underscore the risks associated with high leverage in crypto trading, especially during periods of geopolitical uncertainty.

Event	Value
Total liquidations	$300 million
BTC long liquidations	$107 million
Trader James Wynn’s position	$1.1 billion (40x leverage)
Unrealized losses	$7.5 million

Majority of liquidations were long positions.
Market remains highly reactive to political developments.

Source: CoinDesk

Infobox: $300 million in liquidations, with BTC longs hit hardest, following Trump’s tariff threats.

Bitcoin and Crypto Prices Plunge: $100 Billion Wiped Out

According to dlnews.com, the cryptocurrency market lost 4.3%, equating to over $100 billion, after Trump’s announcement of a 50% tariff on the European Union. Bitcoin dropped nearly 3% after reaching a record high, while Ethereum fell 4% to $2,553. Other major cryptocurrencies, including XRP, Dogecoin, Cardano, and TRX, also declined by 4%. Trump’s statement, which included criticism of the EU’s trade barriers and corporate penalties, led to sharp declines in European stock indices, with Germany’s DAX and France’s CAC both dropping 2%.

Bitcoin: -3% after record high
Ethereum: -4% to $2,553
Other major altcoins: -4%
European stock indices: -2%

Source: dlnews.com

Infobox: Over $100 billion erased from crypto markets as Trump’s tariff threats spook investors.

Market Recap: Bitcoin Retreats from All-Time Highs Amid Trade Tensions

The Defiant reports that after reaching a new all-time high of $111,000, Bitcoin retreated 2.3% to $108,900. Ethereum dropped 3.5% to $2,577, and XRP fell 2.3% to $2.38. Solana was an exception, rising 1.4% to $182. The total crypto market capitalization fell by over 4% to $3.55 trillion. Leveraged liquidations reached $564 million, with BTC accounting for $153 million and ETH for $143 million. On May 22, U.S. spot Bitcoin and Ethereum ETFs saw their highest combined daily inflows since January, with over $1 billion in new investments.

Asset	Price Change	Current Price
Bitcoin	-2.3%	$108,900
Ethereum	-3.5%	$2,577
XRP	-2.3%	$2.38
Solana	+1.4%	$182

Total market cap: $3.55 trillion (-4%)
Leveraged liquidations: $564 million
Spot BTC ETF inflows: $935 million
Spot ETH ETF inflows: $111 million

Source: The Defiant

Infobox: Bitcoin and Ethereum ETFs attract over $1 billion in inflows despite sharp market correction.

Technical Levels and Global Market Reaction

The Economic Times highlights that Bitcoin slid to $108,500 after Trump’s 50% EU tariff announcement. Key technical support levels for Bitcoin are identified at $107,252, $106,080, and $104,145, with resistance at $110,282, $111,877, and $113,943. The global market reaction included sharp declines in European indices and notable drops in the S&P 500 and Dow Jones in the U.S.

Support Levels	Resistance Levels
$107,252	$110,282
$106,080	$111,877
$104,145	$113,943

European indices (DAX, CAC 40): sharp declines
U.S. indices (S&P 500, Dow Jones): notable drops

Source: The Economic Times

Infobox: Bitcoin’s key support and resistance levels in focus as global markets react to tariff news.

Bitcoin’s Record Highs and Market Sentiment

According to Reuters, Bitcoin surged to an all-time peak, eclipsing its January top, as crypto sentiment improved prior to the recent correction. The report notes that the market’s bullishness was driven by positive sentiment and strong inflows into crypto assets, setting the stage for the subsequent volatility triggered by geopolitical developments.

Bitcoin reached new all-time highs before the correction.
Market sentiment was notably bullish prior to tariff news.

Source: Reuters

Infobox: Bitcoin’s rally to record highs was fueled by improved sentiment before the market downturn.

Ethereum’s Technical Outlook: Bulls Eye $2,700 Breakout

TradingView reports that Ethereum surged to $2,734, gaining over 55% since the beginning of May. The $2,700 level is identified as a critical resistance zone, with analysts suggesting that a successful break and consolidation above this area could lead to a move toward $2,900–$3,000. Ethereum’s price action remains bullish, with the asset holding above key moving averages: EMA 34 at $2,574, and SMAs at $2,543, $2,443, and $2,109. The $2,650–$2,670 region has shown strong buyer interest, and a decisive close above $2,700 could trigger the next leg up.

Key Level	Value
Resistance	$2,700
Support	$2,650–$2,670
EMA 34	$2,574
SMA 50	$2,543
SMA 100	$2,443
SMA 200	$2,109

Ethereum up 55% since early May
Break above $2,700 could target $2,900–$3,000

Source: TradingView

Infobox: Ethereum’s bullish structure hinges on a breakout above $2,700 resistance.

Vitalik Buterin’s Four Critical Flaws for Ethereum’s Future

Cointribune details Vitalik Buterin’s vision for a more scalable, efficient, and decentralized Ethereum. He emphasizes the need for reliable and energy-efficient ZK proofs, targeting a reduction in energy consumption from 100 kW to 10 kW. Buterin also advocates for a 10 to 100 times increase in the gas limit and the implementation of stateless nodes for easier and more secure local access. EIP-4444, which limits historical data retention to 36 days, is highlighted as a measure to reduce node load. These changes are expected to impact 15 million Ethereum users.

Real-time ZK proof: under 12 seconds (current energy: 100 kW, target: 10 kW)
Gas limit: 10–100x increase proposed
Stateless nodes: for local, secure access
EIP-4444: limits data storage to 36 days
15 million users affected

Source: Cointribune

Infobox: Buterin’s roadmap aims for a scalable, green, and decentralized Ethereum, with major technical upgrades on the horizon.

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