- Trump’s tariff news impacts Bitcoin markets.
- Bitcoin sinks 2.35% amid tariff tension.
- Tariff threats trigger risk asset sell-off.
Bitcoin fell below $107,500 on May 25, 2025, affected by President Trump’s tariff threats against European imports, shaking the crypto market.
The market’s reaction to Trump’s tariff announcement underscores geopolitical tensions’ impact on digital currency volatility, with significant market corrections emerging swiftly.
President Donald Trump’s announcement of proposed 50% tariffs on the European Union imports caused Bitcoin’s decrease below $107,500. The move is part of Trump’s “America First” trade policy, echoing strategies from his earlier tenure. Trump communicated the tariffs via Truth Social, highlighting trade issues with the EU as a justification for the action.
“The European Union, which was formed for the primary purpose of taking advantage of the United States on trade, has been very difficult to deal with.” – Donald Trump, President of the United States Source
Immediate impacts included a drop in Bitcoin’s value, as it fell from $109,239 to $106,670. The total cryptocurrency market cap saw a notable decline of over $100 billion, and Ethereum fell 4%, trading at $2,553. The announcement also affected traditional markets; Germany’s DAX and France’s CAC each dropped by 2%.
Financial implications of the tariffs include reduced market confidence, causing a withdrawal from risk assets like Bitcoin. Crypto bulls reportedly lost approximately $500 million due to the market’s abrupt shift, though institutional interest persisted, with significant inflows to U.S. Bitcoin ETFs. Historical precedents show that such trade tensions typically provoke market volatility and pressure on cryptocurrencies.
Potential outcomes might see regulatory shifts in international trade policy influencing cryptocurrency markets. Historic trends suggest such geopolitical moves can destabilize financial markets, prompting heightened caution among investors.
