Tariff News Rocks Risk Sentiment

Bitcoin prices collapsed yesterday amidst a broader sell-off in risk markets as traders reacted to an intensification of the technology war between the US and China. Markets were also rocked by news that Trump plans to push ahead with 25% tariffs on Mexico and Canada which had previously been delayed. The news comes despite efforts by both governments to step up border efforts with tariffs set to go live next week when a month-long suspension order expires.

Bitcoin Plunges

The crypto market has been hard hit by the news with Bitcoin futures gapping lower at the open last night and plunging around 7%. The market has now hit its lowest level since November last year, breaking below the prior 2025 lows around $89,525. The market is now at a make-or-break level whereby either bulls can defend the lows, creating a double bottom and setting the stage for a recovery higher, or prices holds below broken support at $91,750 risking a deeper sell off towards $74,655 next.

Retail Selling & ETF Outflows

Bitcoin liquidations have soared in recent days with the market first reversing sharply on Friday as news broke of the Bybit hacking scandal. A mass exodus across retail accounts has come at a time when institutional investors are seeing huge outflows from ETFs, amplifying bearish sentiment in the market. For now, it’s a case of wait and see for bulls but if price doesn’t quickly rebound and close back above $91,750, further losses look likely.

Technical Views

Bitcoin

The sell off has seen the market breaking down below the bull channel and below the $91,750 level. While below here, focus is on continued losses towards $74,655, in line with bearish momentum studies readings. Bulls need to quickly close back above $91,750 to alleviate near-term risks.