ChainTech Africa

May 31, 2025

Bitcoin’s price briefly dipped below $104,000 earlier today, triggering a wave of liquidations across the cryptocurrency market. However, the leading digital asset has since rebounded, trading at $104,668 at the time of writing. This volatility underscores the ongoing sensitivity of the crypto market to macroeconomic developments.

The recent downturn was precipitated by escalating trade tensions between the United States and China. President Donald Trump’s announcement of new tariffs on Chinese imports, followed by retaliatory measures from Beijing, sent shockwaves through global markets. The uncertainty surrounding these developments led to a sell-off in risk assets, including cryptocurrencies.

In the aftermath, nearly $1 billion in leveraged positions were liquidated within a 24-hour period. Long positions accounted for the majority of these liquidations, with Bitcoin alone seeing over $415 million wiped out. Ethereum, XRP, Cardano, and Solana also experienced significant losses, contributing to the overall market turmoil.

Despite the immediate market shock, Bitcoin’s recovery above the $104,000 mark suggests that investor sentiment remains resilient. Analysts caution, however, that the market remains highly sensitive to geopolitical developments and macroeconomic indicators.

As the situation unfolds, traders and investors will be closely monitoring further developments in U.S.-China trade relations and their potential impact on the cryptocurrency market.

Note: All prices are in USD and subject to change.