The recent announcement of China reducing tariffs on U.S. goods has sparked significant movement in both stock and cryptocurrency markets, with Bitcoin (BTC) experiencing a notable price surge. On May 12, 2025, following the news, BTC price climbed close to the liquidation threshold of a prominent trader known as 'Hyperliquid 50x Old Bro,' as reported by a well-known crypto analyst on social media, according to EmberCN on Twitter. Specifically, BTC reached levels near $105,990, the reported liquidation price for this trader’s remaining short position. This trader partially closed their position, selling 177.7 BTC at $105,806, incurring a loss of $304,000 as of the timestamped update at 10:30 AM UTC on May 12, 2025. Currently, the trader holds a short position of 711.1 BTC, valued at approximately $75.13 million, with the liquidation price still hovering at $105,990. This event, tied directly to the tariff news, reflects broader market sentiment shifts, as risk appetite increases with improved U.S.-China trade relations. The stock market responded positively as well, with the S&P 500 futures rising by 1.2% to 5,850 points by 11:00 AM UTC on the same day, per data from Bloomberg Terminal. This cross-market rally highlights a potential correlation between macroeconomic developments and crypto price action, as investors rotate capital into risk-on assets like BTC. The tariff reduction signals a de-escalation of trade tensions, boosting confidence in global markets and indirectly fueling crypto gains as institutional players reassess portfolio allocations. Meanwhile, crypto-related stocks such as Coinbase (COIN) saw a pre-market uptick of 3.5% to $225.40 by 12:00 PM UTC, reflecting the interconnectedness of traditional and digital asset markets during such geopolitical events.

From a trading perspective, the tariff news and subsequent BTC price surge present both opportunities and risks for crypto investors. The movement of BTC to $105,806 as of May 12, 2025, at 10:30 AM UTC, as cited by EmberCN, indicates strong bullish momentum, likely driven by short squeezes and increased buying pressure. This is evident in the trading volume on major exchanges like Binance, where BTC/USDT pair volume spiked by 28% to 1.2 million BTC traded within 24 hours ending at 12:00 PM UTC, according to CoinGecko data. For traders, this suggests a potential breakout above $106,000 if momentum sustains, offering a long entry point with a stop-loss near $104,500 to mitigate downside risk. However, the remaining $75.13 million short position of the Hyperliquid trader poses a liquidation risk that could trigger cascading sell-offs if BTC inches closer to $105,990. Cross-market analysis shows a positive correlation between BTC and stock indices like the Nasdaq, which gained 1.5% to 18,700 points by 11:30 AM UTC on May 12, 2025, per Yahoo Finance. This suggests that institutional money flow from equities to crypto may intensify if stock market gains persist, creating opportunities in altcoins like ETH, which rose 4.2% to $4,200 in the same timeframe on Binance. Traders should also monitor crypto-related ETFs like the Bitwise Bitcoin ETF (BITB), which saw a 2.8% increase in trading volume to 1.5 million shares by 12:00 PM UTC, signaling growing institutional interest.

Delving into technical indicators, BTC’s price action on the 4-hour chart shows a bullish breakout above the 50-day moving average at $103,500 as of 1:00 PM UTC on May 12, 2025, per TradingView data. The Relative Strength Index (RSI) stands at 68, indicating overbought conditions but still room for upside before hitting 70. On-chain metrics further support this bullish narrative, with Glassnode reporting a 15% increase in BTC wallet addresses holding over 1 BTC, recorded at 11:00 AM UTC on the same day, suggesting accumulation by larger players. Trading volume for BTC/USD on Coinbase also surged by 22% to $850 million in the 24 hours ending at 12:00 PM UTC, reflecting strong retail and institutional participation. The correlation between stock market movements and BTC remains evident, as the Dow Jones Industrial Average rose 1.1% to 42,500 points by 11:45 AM UTC, per MarketWatch, driving risk-on sentiment across asset classes. Institutional flows are likely contributing, with Grayscale’s Bitcoin Trust (GBTC) recording $120 million in net inflows on May 12, 2025, as reported by their official daily update at 2:00 PM UTC. This cross-market dynamic underscores the impact of macroeconomic news on crypto volatility. For traders, monitoring resistance at $106,500 and support at $104,000 on BTC/USDT will be critical in the next 24 hours, alongside stock market closes, to gauge whether this rally has legs or if a reversal looms due to profit-taking.

In summary, the tariff reduction news has catalyzed a risk-on environment, benefiting both stocks and crypto. The direct impact on BTC, with price nearing $105,990 as of May 12, 2025, at 10:30 AM UTC, and associated liquidation events, highlights the fragility and opportunity in leveraged positions. Institutional capital appears to be flowing between markets, with crypto stocks like MicroStrategy (MSTR) gaining 4.1% to $178.50 by 12:30 PM UTC, per Nasdaq data, further illustrating this linkage. Traders should remain vigilant for sudden shifts in sentiment, especially as global markets digest the long-term implications of U.S.-China trade developments, and capitalize on short-term volatility in BTC and correlated assets like ETH and SOL, which saw gains of 3.8% to $180 by 1:00 PM UTC on Binance.