Trump's '50% Tariff Bomb' Warning...Bitcoin Faces Collapse Below $68,000

▲ Trump, Bitcoin (BTC) / ChatGPT Generated Image

Geopolitical tensions triggered by former U.S. President Donald Trump's warning of high tariffs on China have caused Bitcoin prices to plummet, spreading fear throughout the market.

According to crypto media outlet Cryptopotato on April 13 (local time), President Trump, believing China was behind the breakdown of peace talks with Iran, announced strong economic retaliation. He stated via X (formerly Twitter), “China is behind Iran's rejection of a peace deal,” and “I have instructed to impose a 50% tariff on all imports from China.”

Upon the release of these remarks, the virtual asset market immediately faced selling pressure. Bitcoin (BTC), which had already fallen to $71,000 due to weekend Middle East tensions, dropped by more than $3,000 within just a few hours after the tariff announcement, threatening the $68,000 level. Global liquidity contraction and risk aversion sentiment are simultaneously at play, leading to a sell-off by investors.

Technical indicators also warn of downside risk. Analysis suggests that if Bitcoin breaks the $67,500 support level, additional selling pressure could accelerate, potentially leading to a decline to the low $60,000s. The high level of open interest in the futures market also raises the possibility of cascading liquidations in the event of a price drop, amplifying the decline.

Market instability further escalated with the news of U.S. Vice President JD Vance's early return from Pakistan, where he was visiting for negotiations with Iran. As the breakdown of negotiations shows signs of escalating into an economic conflict between the U.S. and China, the market capitalization of virtual assets has shrunk by hundreds of billions of dollars in a short period.

The volume of Bitcoin flowing into exchanges has surged, and the amount of Bitcoin waiting to be sold is also rapidly increasing. Large investors have shifted to a wait-and-see approach, monitoring further policy announcements and geopolitical situations, while the fear among individual investors has reached extreme levels. The market expects prices to be influenced by macroeconomic and political variables for the time being and emphasizes conservative response strategies.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*