Bitcoin (BTC) price plunged as low as $81,600 on Friday, facing renewed downside pressure as China retaliated against the United States (US) with steep import tariffs, heightening market uncertainty.
China retaliates with 34% tariffs as US trade war escalates, impacting Bitcoin market
On Friday, China imposed 34% reciprocal tariffs on US imports, intensifying global economic tensions. China's retaliatory measures come barely 48 hours after President Donald Trump levied 34% tariffs on Chinese goods, during the Liberation day speech on Wednesday.
The move amplifies fears of a prolonged trade war, sending shockwaves across financial markets, including Bitcoin and the broader cryptocurrency sector.
Bitcoin price has been on the backfoot this week, struggling to hold above the $82,000 support level.
According to Coinmarketcap data, China’s tariff announcement triggered another downswing as BTC price tumbled as low as $81,600, before rebounding towards the $83,200 mark at press time.
Bull traders must defend $81,000 support to avoid $793 million liquidations
While traders weigh the impact of the latest geo-political developments surrounding the US trade war, BTC derivatives market data trends suggest many bull traders holding BTC positions around the current prices are highly-leveraged.
At first glance, Coinglass data shows that BTC long positions worth $91 million have been liquidated in the last 24 hours as panic sellers executed early exits after Trump’s tariff announcements.
But digging deeper into liquidation map data, Bitcoin traders face a much larger wave of losses if BTC falls below the critical $81,000 support level. As shown below, approximately $793.4 million worth of BTC long positions are clustered around $81,100. 