Bitcoin falls below $120K after Trump’s 100% Russia tariff threat, but exchange netflows hint at a potential rally continuation.
After reaching an all-time peak of $123,091 earlier today, the price of Bitcoin (BTC) has fallen below $120,000. The price of Bitcoin (BTC) has decreased in response to recent geopolitical tensions. U.S. President Donald Trump has threatened to implement 100% tariffs on Russia within 50 days if the conflict in Ukraine does not cease.
The price of bitcoin has declined after reaching an all-time high
The Bitcoin price experienced a significant increase over the weekend and early Monday, reaching its all-time high of $123,091. Nevertheless, according to the most recent reports, it subsequently declined to $120,124 and has since continued to decline, currently hovering around $119,900. Following President Trump’s public statements that threatened new tariffs on Russia and confirmed a weapons agreement with NATO allies for Ukraine, this retracement occurred.
Nevertheless, the abrupt BTC price correction has prompted apprehensions that Bitcoin may have attained a temporary high. A correction or sideways movement may happen depending on global political developments and market sentiment.
Nevertheless, the Bitcoin price may experience an additional surge, particularly if the crypto bills are approved, as the crypto week has just commenced. According to analysts, this bullish momentum may propel the price of Bitcoin toward a new all-time high of $136K.
The market reacts to Trump’s threat of imposing a 100% tariff on Russia
President Trump declared during a joint press conference with NATO Secretary General Mark Rutte that Russia would be subject to secondary tariffs of up to 100% if a ceasefire agreement is not reached in Ukraine within 50 days. On Monday, Trump stated at the White House, “We are compelled to implement secondary tariffs; they are quite severe.”
Additionally, he verified that NATO has concluded a substantial weapons agreement. Trump said, “We will send them a large quantity of weapons of all types, and they will deliver them immediately.” He underscored that the United States would manufacture the armaments, while the European allies would provide the funding.
Immediately following this announcement, Bitcoin’s price experienced a decline of more than $3000, thereby testing the $119k support level. These threats are in response to Trump’s recent announcement of a 30% tariff on imports from the EU and Mexico and a 50% tariff on copper and other commodities from multiple nations.
On-Chain Metrics Indicate Profit-Taking and Potential Local Top
After Bitcoin reached $123,000, exchange netflows experienced a significant increase, as indicated by CryptoQuant.com. This suggests that profit-taking activity was underway. According to a post from the organization,
“This kind of movement typically suggests a local top and could lead to a healthy correction or consolidation in the coming days.”
In the interim, the Crypto Fear & Greed Index increased to 70, solidifying its position in the “Greed” category. Although this indicates favorable investor sentiment, excessive avarice levels may suggest overbought conditions. According to analysts, the index frequently reaches such levels, and traders often pocket profits.
Bitcoin futures open interest increased by 3.87% to $87.95 billion, indicating that derivatives markets are gaining momentum. CoinGlass also reported that the trading volume increased by 146.88% to exceed $152 billion, indicating a strong but potentially overextended purchasing pressure that could maintain the upward trend in the price of Bitcoin.