Bitcoin held the ground above $104,000 on Monday despite US-China trade tensions and court-led tariff drama that rattled global markets.
Last Friday, US President Donald Trump accused China of violating a mid-May agreement to suspend tariff escalation, and announced a rise in import tariffs on steel and aluminum from 25% to 50%, effective June 4th.
The pause produced the “Trump Always Drops Out the Chicken” meme and its acronym tacos. The president seems to want to prove his critics wrong.
At a campaign rally at the US Steel Factory in West Mifflin, Pennsylvania, Trump said the tariff hikes “will secure more of the US steel industry” while promoting a contract between Nippon Steel and US steel as a victory for American workers.
Geopolitical whiplash caused nearly $1 billion in crypto liquidation, according to QCP Capital’s Monday update.
BlackRock’s ISHARES BITCOIN TRUST ETF saw a $430 million spill on May 30, fresh from a record 34-day inflow streak and following Farside investors’ data.
However, BTC remained configured, signaling a reset of leverage rather than investor panic.
At the moment, Bitcoin is trading at $104,158, a slight increase of 0.1% over the past 24 hours, according to Coingecko data.
“The risk reversal has begun to normalize… (and) Perp’s funds have leveled off,” QCP wrote, suggesting it has kept short-term price volatility.
Institutional interests are not suppressing eithe. Japan’s Metaplanet added another $114 million to its post-sale BTC, bringing its holdings to 8,888 BTC, worth more than $925 million.
QCP referenced the acronym for TACO. This has been popular among Trump critics, but Friday’s escalation suggests he may be aiming to go against that perception.
With no major policy catalysts by July 8th, the BTC could maintain a range between $10,000 and $110,000, the QCP noted, citing high open interest at these levels.
Arthur Azizov, founder and investor of B2 Ventures, said Decryption Tariff headings contributed to market termination, but not structural changes.
Azizov called the tariff “highly likely to cause market volatility, especially in risky assets like crypto,” but added, “that doesn’t necessarily mean we’ll see a sharp, immediate decline in Bitcoin and other digital currencies.”
“Over time, we’ve already seen multiple headlines about tariffs, their delays, reversals and policy changes, all of which have caused market fluctuations, but for long-term investors it’s not making a big difference to the big picture,” the expert said.
China responds to Trump’s claims
On Monday, the Chinese Embassy in Washington posted a statement on X from the Chinese Department of Commerce, calling Trump’s claims “basically unfounded” and warned him of “strong measures” accordingly.
The ministry said China supported the Geneva deal while the US imposed “discriminatory” actions, including banning AI chips, revoking visas and software restrictions.
China is the world’s largest steel exporter, but it has hardly been sent to the US due to the 25% tariff imposed in 2018. Ranked third in aluminum supply, the new 50% tariffs will hit the country directly.
The federal court of appeals temporarily restored Trump-era tariffs on May 29, suspending the Trade Court’s ruling that deemed unconstitutional.
On Sunday, Trump argued that if the judge ruled over his tariff power, “we would allow other countries to hold our country hostage with anti-American tariffs.”
Edited by Stacy Elliott.
