Bitcoin and Market Cycles:

Why Liquidations Are Needed Before New Highs

With Bitcoin already in a bull market, reaching new highs isn’t just about increasing demand—it also requires periodic corrections. The market needs forced liquidations to flush out over-leveraged traders before BTC can push toward new all-time highs (ATHs).

How Tariffs Fuel Liquidations?

Market Volatility:

Tariff announcements trigger uncertainty, causing short-term panic selling in both traditional markets and crypto.

Leverage Wipeouts:

Bitcoin traders using excessive leverage often get liquidated during volatile moves, resetting the market for healthier price action.

Institutional Accumulation: Once weak hands are shaken out, institutional investors (like BlackRock and Fidelity) capitalize on lower prices, leading to the next leg of the bull run.

Given these factors, a period of high volatility and strategic liquidations may be necessary before Bitcoin surpasses $100K and beyond.

Conclusion: Trump’s Tariffs, Bitcoin’s Ascent, and the Next Global Reset

Trump’s tariff strategy, while aimed at improving U.S. trade terms, may unintentionally accelerate Bitcoin adoption. As trade restrictions disrupt global economies, capital flows into $BTC as a borderless, inflation-resistant, and politically neutral asset.

At the same time, the bull market is unfolding with necessary liquidations paving the way for new highs.

Just as tariffs bring foreign leaders to the table for negotiations, they also create the perfect storm for Bitcoin to absorb trillions in global capital searching for safe-haven alternatives.

With or without Trump, Bitcoin remains the ultimate tariff-proof asset—and its next price discovery phase is just beginning. 🚀