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Bitcoin BTC $96 611 24h volatility: 2.1% Market cap: $1.92 T Vol. 24h: $29.09 B reversed gains on May 23 after President Donald Trump announced new trade measures targeting the European Union.
The move sent shockwaves across global markets, with Bitcoin and other cryptocurrencies reacting negatively to the revived tensions.
Trump’s EU Tariff Plan Sends Market into Panic
The digital asset markets woke up to a fresh wave of volatility after President Trump declared a 50% tariff on all goods imported from the European Union.
In a post on Truth Social, the president said that discussions with the EU had stalled and that the U.S. had no choice but to take stronger action. The new tariffs are expected to begin on June 1, 2025. This latest tariff update comes when the United States and China actively negotiated favorable trade terms.
Shortly afterward, President Trump turned his attention to Apple Inc. (NASDAQ: AAPL), warning the tech giant of a 25% tariff on iPhones that are not manufactured within the United States.
He stated that he had already informed Apple’s CEO, Tim Cook, of his expectations regarding domestic production. According to the president, if Apple continues to assemble iPhones in countries like India, the 25% tariff will be enforced.
The announcements rattled financial markets. U.S. stock index futures fell, and Apple shares dropped 3.6% in early trading. Bitcoin, which had crossed the $111,000 mark just hours before, fell to around $108,600 following the news.
Bitcoin Price Bleeds as Trade War Fears Resurface
It is worth mentioning that the impact was immediate across the crypto market. The total market value dropped to $3.42 trillion, reflecting a 2.58% decline. Bitcoin, the market leader, saw a slight pullback in value after reaching a record high earlier in the week.
Bitcoin was trading at $109,494.41, down by 1.86% at the time of writing. The sudden drop in the price of Bitcoin was closely tied to renewed fears over international trade disruptions.
Other major cryptocurrencies followed the selloff trend. Ethereum ETH $1 845 24h volatility: 2.6% Market cap: $222.72 B Vol. 24h: $14.22 B dropped by 2.65% to trade at $2,581.36, and XRP XRP $2.22 24h volatility: 0.8% Market cap: $129.99 B Vol. 24h: $2.17 B fell 2.27% to $2.36. The overall mood turned cautious as investors digested the president’s comments and considered the possibility of further trade-related measures.
Traders had expected a quiet session before the holiday weekend, but the tone changed quickly as President Trump posted his message. With the tariff threat now front and center, traders are bracing for a volatile period. The uncertainty around trade policy and its broader effects on tech and crypto markets remains high.
As the June 1 implementation date approaches, the attention will likely remain on Washington and any further statements from the President. For now, the fear of an extended trade war has again cast a shadow over global markets, and Bitcoin is feeling the pressure.
It is worth noting that despite the current tariff concerns, Texas is moving forward with legislation to create a Bitcoin reserve, becoming the second state to do so.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
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Benjamin Godfrey is a blockchain enthusiast and journalist who relishes writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desire to educate people about cryptocurrencies inspires his contributions to renowned blockchain media and sites.
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