**Key points:**

* Bitcoin joins risk assets in a knee-jerk reaction to the latest instalment of the US trade war, this time focused on the EU.

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

* Traders demand that price holds higher levels going forward to protect bullish momentum.

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

_BTC/USD 1-hour chart. Source: Cointelegraph/TradingView_

## Bitcoin trips 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.

> “Therefore, I am recommending a straight 50% Tariff on the European Union, > starting on June 1, 2025.”

_Source:__Truth Social_

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.

> “All driven by headlines once again.”

_Binance Bitcoin futures market data overview. Source: Skew/X_

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

_Total crypto liquidations (screenshot). Source: CoinGlass_

“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.

> “Will have to see where this settles today and how BTC ends up performing > relative to equities now the trade uncertainty is back.”

_BTC/USDT 15-minute chart. Source: Daan Crypto Trades/X_

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.

> “Now, President Trump must find a middle ground to maintain tariffs but also > suppress treasury yields WITHOUT Fed cuts.”

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.

_BTC/USDT 4-hour chart. Source: Crypto Caesar/X_

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 pic.twitter.com/ugQEGQIcpD > > — Poseidon (@CryptoPoseidonn) May 23, 2025

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

> “Important level from here for the market to auction above (key for > continuation).”

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.