Bitcoin Price Crashes to $103K After China Ban and Trump’s Threats Roil Markets

A dramatic weekend saw Bitcoin slide to $103,000 amid China’s hardline crypto ban and escalating rhetoric from President Trump, who accused China of breaking its trade pact with the U.S. The market has since stabilized slightly, with BTC price recovering to $104,500.

According to initial sources, Chinese regulators have imposed an outright ban on holding cryptocurrencies — including household names like Bitcoin and Ethereum. Observers suspect this is a strategic move to push the adoption of China’s central bank digital currency (CBDC), the digital yuan, which is designed to operate under full state control and may include usage restrictions.

Market sentiment and Bitcoin dominance: 

• Fear & Greed Index: 57, Market sentiment is neutral.
• BTC Dominance: 63.7% market share;
• Altseason Index: 22 — indicating Bitcoin remains the dominant narrative.

Liquidations volume totaled $165 million, with longs making up $85 million. Ethereum positions saw $41 million in losses, and Bitcoin just $32 million — indicating most investors held firm through the downturn.

Bitcoin Bounces — Recovery Faces Resistance

After cracking below that key diagonal trendline, Bitcoin found footing at the 200-period exponential moving average (EMA) on the 4-hour chart. It's a decent bounce, but don't pop champagne yet — technically, BTC isn’t showing the strength needed to launch back to previous levels with confidence.

Trader Dieguito believes we might see Bitcoin hit a new peak around $114,000, but only after dipping back to $100,000. If that plays out, it would confirm a wide trading band taking shape between these major price markers — with $100K acting as a recurring pivot.

ETF Outflows, Powell’s Signals, and Policy Turbulence

May ended with a sharp shift in sentiment as U.S. spot Bitcoin ETFs saw $616.1 million in outflows. Over the final two days of trading, that number nearly hit $1 billion. Even BlackRock’s flagship fund, IBIT — once a model of investor confidence — joined the exodus on May 30, losing $430.8 million and snapping its record-breaking inflow streak.

The crypto market remains under a weight of uncertainty, with eyes now fixed on June 2, when Federal Reserve Chair Jerome Powell is expected to deliver a critical assessment of the U.S. economy. His commentary — spanning inflationary pressures, employment metrics, and monetary policy strategy — may set the tone for asset markets in the weeks ahead.

Read on: Resistance levels: logic, methods, techniques

Few voices carry more weight on Wall Street than Jerome Powell’s. His speeches often tip the balance of market sentiment. A softening tone, hinting at future rate cuts, could reawaken appetite for risk — with Bitcoin among the first beneficiaries. But a guarded or hawkish message might do the opposite: spark a wave of short covering and test the resilience of crypto prices.