Bitcoin above $111,500 after Trump's EU tariff shock. BlackRock ETF Drives $934M Inflows As BTC Eyes $120K Breakout
Bitcoin held above $111,500 on Friday, May 23, supported by rising ETF inflows and rising trade tensions after Trump threatened to impose new tariffs on the European Union (EU).
Bitcoin (BTC) buyers firm at $108K as Trump slaps 50% tariffs on EU
Bitcoin hit an intraday high of $111,800 before stabilizing around $111,500 on Thursday, according to data from CoinGecko.
The rally came shortly after US President Donald Trump's Truth social post announcing a proposed 50% tariff on all goods imported from the European Union (EU) starting June 1, 2025.
The shock announcement, which Trump labeled "unfair lawsuits, trade barriers, and financial manipulation" as retaliation against him, rattled bond and equity markets, but sparked fresh inflows into crypto.
The timing of the post seems to have reinforced Bitcoin's role as a geopolitical hedge. Instead of triggering profit-taking after recent gains, bull traders held their ground.
BTC price stabilized above $111,500 for the better part of Friday before plunging towards $108,400 at press time.
Additionally, at press time on Friday, Bitcoin's daily volume exceeded $75 billion for the first time in two weeks, indicating aggressive buying participation.
As global investors brace for a possible trade war, Bitcoin's resilience above $110,000 suggests it is becoming a preferred safe-haven alternative to fiat assets, especially as investor confidence in traditional markets such as the United States and the European Union falters.
BlackRock's IBIT Dominates $934M Bitcoin ETF Inflows Amid Institutional Circulation
Institutional demand for bitcoin intensified Thursday as U.S. spot bitcoin ETFs posted a record $934.8 million in net inflows.
This represents the largest one-day inflow since the US Securities and Exchange Commission approved bitcoin derivatives for trading on US regulated public markets in January 2024.
BlackRock's iShares Bitcoin Trust (IBIT) led the charge with inflows of $877.2 million, roughly 90% of the day's total BTC ETF deposits, according to foreside data.
Notably, other prominent ETF issuers remained flat or posted negligible activity, including Grayscale, Valkyrie, Franklin, and Van Eck.
Given BlackRock's dominance in the sector, this could signal an increase in strategic demand among other U.S. ETF issuers that sat out Thursday's latest buying frenzy.
Coinciding with threats of Trump's tariffs on the U.S., the latest demand for $877 million in bitcoin from Blackrock's IBIT ETF, which trades in both the U.S. and the EU, signals a sharp reaction to rising trade tensions and corporate rotation out of bond markets as regulators in both regions prepare to cut rates again.
As institutional investors move funds into bitcoin for diversification, and look to hedge against a weakening dollar, the price of BTC looks poised for another leg up in the coming days.
What's Next for the Bitcoin Price?
After establishing a strong support base around $110,000, Bitcoin's technical outlook suggests that the next psychological target is around $120,000. Bulls refusal to take profits even after a strong rejection near $111,800 under further upside pressure.
Additionally, Bitcoin's 24-hour trading volume crossed the $75 billion mark on Thursday, the highest in the 14 days since May 7, signaling the onset of another upward catalyst.
Trump's tariff announcement could create uncertainty in both EU and US sovereign bond markets. As investors face yield volatility and weak demand, Bitcoin may benefit from a flight to safety circulation.
In the short term, $BTC ’s ability to hold above $110,000 will be closely watched by traders. A breakout above $112,000 could accelerate towards the $118,000–$120,000 resistance band.
Bitcoin Price Forecast Today: Pullback after $112K peak could prime BTC for $120K target
Bitcoin price fell 3.13% in today’s session to $108,200, retreating from the intraday high of $111,800. Despite the pullback, technical momentum remains tilted to the upside.
The short-term 9-day moving average is moving strongly above the green 21-day moving average, confirming a bullish crossover from early May that historically precedes price extensions.
The brief $BTC price correction seen on the daily candle appears to be a healthy consolidation after an aggressive rally from the sub-$100K level, with support near $106,500, the 9/21 MA convergence zone serving as a potential re-entry point.
Bitcoin price forecast remains bullish in structure today, as MACD still shows a positive bias. The MACD line at 4,117 sits comfortably above the signal line at 3,927, albeit with a slight curve inward.
The important thing is that the histogram bars are still printing above zero, indicating that the upward pressure remains. As long as the $BTC price remains above the MA support zone and the MACD remains in positive territory, the dominant trend is up.
If BTC reclaims $111,000 on strong volume, a bullish breakout could resume. A confirmed close above $112,000 opens the way to $118,000 to $120,000, aligning with Fibonacci extension targets and prior resistance clusters.
On the other hand, a failure to hold $106,500 could lead to a deeper correction towards $103,000, where the 21-day MA provides key trend support.