Today’s headlines:
- Market panic as $BTC falls to $91,000.
- Broader crypto sees mass liquidations of $2B due to Trump tariff dump.
- Czech national bank considers adding Bitcoin to its reserves.
- ECB President Lagarde says No to Bitcoin as a reserve asset.
As markets panic over concerns about Trump’s trade tariffs, Bitcoin has not escaped the bloodbath. It has experienced a volatile day, though less volatile than much of crypto.
While there is widespread concern, the chart below shows that $BTC has simply moved back into the range we have been monitoring in recent weeks.
In fact, the price of BTC tapped the range support area at $91,000 and is currently rallying from that point.
Figure 1: $BTC tapping range support today.
Thanks to the rally in recent hours, $BTC is down just -4.16% over the past 24 hours.
Figure 2: $BTC rallying after the capitulation earlier today.
The Big Story
Trump Sell Off
Today, global financial markets, including Bitcoin and, in particular, crypto, experienced significant sell-offs following President Donald Trump's announcement of new tariffs: 25% on imports from Mexico and most goods from Canada, and 10% on goods from China.
These measures have heightened fears of a potential trade war, leading investors to move away from riskier assets. The uncertainty surrounding the economic impact of these tariffs has contributed to increased market volatility.
While the Trump tariffs are being discussed as the key reason for the sell-off, much of the selling has been forced liquidations.
As price continued to drop, more traders using leverage to bet on Bitcoin and other crypto trending up got caught up and had their positions liquidated.
These forced liquidations amount to more than $2 Billion over the past 24 hours. The highest ever in crypto. However, it is worth recognizing that with Bitcoin price now around $100k, the market cap of coins traded is much higher than previous major liquidation events like the Covid crash of 2020 or FTX implosion of 2021.
Figure 3: Major surge in liquidations over the past 24 hours.
Not surprisingly, this sent traders into a state of panic. We can see this panic on a chart when looking at Bitcoin Funding Rates. Negative funding rates (red bars) show when traders start to short Bitcoin or hedge against existing longs - in expectation of $BTC dropping further.
Over the past 24 hours, there have been extreme levels of negative funding on retail exchanges like Bybit. The highest levels seen since BTC reached $100k in Q4 last year.
Figure 4: Negative funding rates over the past 24 hours.
Historically, in bull markets, this indicates a noteworthy price low on high time frames and Bitcoin can typically rally in the coming weeks afterward.
The bounce off the lows today is encouraging. We will continue to monitor $BTC price performance over the coming weeks and see if it can finally break out and make fresh highs.
Key Chart
NEW CHART - Terminal Price
Figure 5: Terminal Price
The Terminal Price indicator is designed to forecast Bitcoin's price cycle peaks.
It begins by calculating the Transferred Price, which involves dividing the sum of Coin Days Destroyed (a measure of the time-weighted movement of coins) by Bitcoin's existing supply and its time in circulation. This Transferred Price is then multiplied by 21 million—the maximum number of Bitcoins that will ever exist—to normalize historical behavior to the present, resulting in the Terminal Price.
Historically, this indicator has effectively predicted when Bitcoin’s bull markets are approaching completion.
It currently shows a price of $197,294. As BTC climbs toward it, this indicator would push well above $200k for a potential cycle peak.
Bitcoin Magazine Pro platform subscribers can set alerts for this chart and many others.
To subscribe to the platform, join us here.
The Bitcoin Magazine Pro Team.