Bitcoin and altcoins are going down – is this the end of the crypto bull run?

Bitcoin and most altcoins pulled back on Friday, erasing some of the gains they made earlier this week.

Bitcoin (BTC) dropped to $107,300, down by 4.12% from its highest point this week. Similarly, Ethereum (ETH) fell by over 8% from its weekly high, while the market cap of all cryptocurrencies, excluding Bitcoin, fell from this week’s high of $1.28 trillion to $1.19 trillion. 

The ongoing crypto crash coincided with the sell-off in the stock market. Futures tied to the Dow Jones, S&P 500, and Nasdaq 100 fell by over 1%, continuing a sell-off that has been going on since Monday.

Bitcoin and altcoins fell amid trade concerns

Bitcoin, altcoins, and the stock market retreated as trade concerns resumed. In a TruthSocial post, President Donald Trump said that trade talks with the European Union were going nowhere, and warned that the US will apply a 50% tariff on all goods from the region.

The statement meant an escalation at a time when market participants have been hoping for a deal between the two allies. 

Europe has hinted that it will respond by hiking tariffs on US goods, including Boeing jets. In a statement this week, Ryanair’s CEO warned it would consider cancelling a $33 billion order from Boeing and switching to Airbus if Boeing planes were hit with tariffs. Ryanair is Boeing’s biggest customer. 

These trade concerns are coming a week after Moody’s sent shockwaves in the financial market by downgrading the US credit rating. It also came as the House of Representatives voted for the Big Beautiful Bill that will increase US debt by over $3.8 trillion in a decade.

Is this the end of the crypto bull run?

This is not the end of the crypto market bull run for three main reasons. First, the 50% tariff on European goods is a negotiating tactic as Trump did with China. After pushing tariffs on Chinese goods to 145%, he pared them back to 30% earlier this month. 

Second, Bitcoin has become a safe haven asset. Most recently, it outperformed the stock market after the Liberation Day tariffs. Spot Bitcoin ETFs have added over $8 billion in inflows since April. 

Bitcoin’s appeal as a safe-haven asset is mostly because of its demand and supply metrics. Demand from institutions continues to rise as supply on exchanges and over-the-counter venues continues to fall. Also, Bitcoin has proven itself as a worthy asset in the last 16 years as it jumped from near zero to $111,900 this week.

Third, these pullbacks in Bitcoin and altcoins are normal. Just recently, Bitcoin fell from $109,300 in January to $75,000 in April and then bounced back to a record high. In 2024, it peaked at $73,340 in March, fell to $49,390 in August, and rebounded to a record high in November.