Bitcoin, the world's leading cryptocurrency, experienced a significant downturn, plummeting more than 12% to below $113,000 following a major policy announcement by former U.S. President Donald Trump. The announcement, which outlined plans for an additional 100% tariff on China and export controls on software, sent shockwaves through global markets, including the volatile cryptocurrency sector.

Record-Breaking Market Reaction

The market's response to Trump's announcement was swift and severe, resulting in an unprecedented liquidation event in the cryptocurrency market:

Coinglass, a cryptocurrency analytics platform, labeled this as the largest liquidation event in crypto history, suggesting that actual totals could potentially exceed $30 billion.

Bitcoin's Rollercoaster Ride

The dramatic fall comes on the heels of Bitcoin reaching a new all-time high:

Market analysts are now closely watching the $100,000 level, which they identify as the next major support for Bitcoin. A drop below this threshold could potentially signal the end of a three-year bull cycle in the cryptocurrency market.

Broader Market Impact

The ripple effects of Trump's tariff announcement extended far beyond the cryptocurrency market:

• Global Markets: Stocks and oil prices also experienced significant declines.
• Safe Havens: Investors flocked to traditional safe-haven assets, driving up demand for Treasuries and gold.

This market-wide reaction underscores the interconnectedness of global financial markets and the growing influence of cryptocurrency in the broader economic landscape.

Looking Ahead

As the markets digest this news, investors and analysts will be closely monitoring how these geopolitical tensions and policy shifts continue to impact both traditional and cryptocurrency markets. The volatility witnessed in Bitcoin's price serves as a stark reminder of the cryptocurrency's sensitivity to global economic and political events, despite its reputation as a potential hedge against traditional market fluctuations.

Bitcoin, the world's leading cryptocurrency, has once again captured the attention of investors and traders alike as it soared to unprecedented heights. The digital asset's meteoric rise has not only set a new all-time high but also ignited a flurry of optimistic trading activity across the crypto market.

Record-Breaking Rally

Bitcoin traded near $124,610.00 with 0.80% gains, reaching a fresh all-time high of $126,198.00 during the session. This milestone caught many traders off guard, particularly those holding short positions.

Altcoin Surge

The rally wasn't limited to Bitcoin alone. Ethereum reclaimed the $4,700.00 mark with 4.20% gains, while BNB surged past $1,200.00 to hit a new all-time high. Other major cryptocurrencies including XRP, Solana, Tron, Dogecoin, and Cardano gained over 5%.

Market Dynamics

The overall crypto market capitalization increased 0.99% to $4.27 trillion. Analysts attribute the rally to several factors:

Technical Analysis

Bitcoin is facing resistance near $127,000.00 with support levels between $120,000.00-$122,000.00. Momentum indicators remain positive, with analysts suggesting potential moves toward $130,000.00 if resistance is cleared.

Market Outlook

As Bitcoin continues to make headlines with its price performance, market participants will be closely watching to see if the cryptocurrency can maintain its momentum. The surge in altcoins and the overall market capitalization increase suggest a broader bullish sentiment in the crypto market.

Traders and investors should remain cautious, however, as the cryptocurrency market is known for its volatility. While the current trend appears strongly positive, market conditions can change rapidly in the crypto space.