Bitcoin Dips Below $109,000 Amid New U.S.-EU Tariffs
- Trump’s EU tariffs prompted market volatility and a sharp sell-off.
- Bitcoin’s drop linked to geopolitical tensions.
- Crypto markets face possible short-term pressures.
Bitcoin plunged below $109,000 following President Trump’s announcement of new tariffs on the EU, sending a ripple through the crypto markets on May 23, 2025.
The event signals Bitcoin’s vulnerability to political developments, sparking short-term market jitters.
Bitcoin fell to $108,500, retreating from its all-time high earlier in the week. President Trump’s announcement of new EU tariffs was identified as the immediate catalyst for this market fluctuation. The move demonstrated Bitcoin’s susceptibility to macroeconomic news and political disruptions. Bitcoin’s quick decline underscores ongoing market sensitivity to geopolitical actions stemming from major economic players.
Coinbase recorded both the all-time high and subsequent sharp drawdown as market participants reacted swiftly to President Trump’s tariffs announcement. The crypto community is assessing the potential impact, with institutional players like Joe DiPasquale highlighting the shift in investor sentiment:
“Bitcoin is pushing toward new highs with strong tailwinds behind it—from steady ETF inflows to a broader shift in political tone. This doesn’t feel like a short-term squeeze—it’s a more sustained bid that reflects a structural shift in how investors are viewing Bitcoin. It’s moving from a speculative trade to a strategic allocation.” source
Ethereum and other altcoins, such as Solana and XRP, also experienced contagion effects, displaying market-wide vulnerabilities to risk-off sentiments. Bitcoin’s transition from speculative to strategic assets indicates a structural market transformation.
Coinbase noted the rapid drawdown in Bitcoin prices as reflecting heightened market volatility. Historical data highlights Bitcoin’s tendency to react significantly to geopolitical events, often resulting in synchronized price movements across major cryptocurrencies. Experts suggest that while this decline could signal temporary concerns, investor perspectives may shift long-term as structural market dynamics evolve. Bitcoin’s performance may continue to be shaped by macroeconomic factors and political announcements, underlining the interconnectedness of crypto and global economic policy.
