The cryptocurrency market experienced a sharp decline after U.S. President Donald Trump threatened tariffs on European goods, sending Bitcoin prices plummeting to $108,000 within 24 hours. This significant sell-off erased around $638 million in leveraged positions, as per Coinglass data. The comments from Trump triggered panic across global markets and impacted numerous other crypto assets like Ethereum, XRP, Solana, Dogecoin, and Cardano, which all saw declines of 3-6%. Crypto positions worth nearly $350 million were liquidated within just four hours, with an additional $500 million wiped out in the following 24 hours. This decline also affected traditional crypto stocks, with companies like Microstrategy and Semler Scientific experiencing a drop of around 6% while Metaplanet dropped even further at 24%. Despite Bitcoin hitting a record high this week, cryptocurrency stocks failed to maintain those gains. Experts now grapple with the implications of Trump’s tariffs on the market’s trajectory. The Kobeissi Letter emphasizes that if Trump pushes tariffs aggressively, it could potentially disrupt market stability but backs off too quickly, inflation risks could rise again. Finding the right balance between demonstrating strength and avoiding undue pressure remains a challenge for Trump. Analyst Benjamin Cowen suggests this recent downturn resembles typical price fluctuations following a golden cross. He predicts this dip will last a few days before a potential rebound next week. However, analyst Michaël van de Poppe highlights a key difference in this cycle by suggesting the market could present unexpected surprises over the next 1-2 years. The potential for longer cycles and Bitcoin’s surge to $400K-$600K by 2026/2027 has led to optimism among some, while others remain cautious about predicting the market’s future course.