Trump’s Tariff Threats Impact Bitcoin Market Stability
- Trump’s tariff threats raise Bitcoin’s market risk.
- Bitcoin faces resistance at $110,000.
- Market cautious amid tariff policy uncertainty.
Donald Trump’s recent announcement of renewed unilateral tariffs has stirred significant volatility in both traditional and cryptocurrency markets.
The new tariffs signal immediate macro risks impacting Bitcoin, spurring volatility and enhanced risk aversion in markets.
Donald Trump, former US President and 2024 Republican presidential candidate, reiterated unilateral tariffs via Truth Social. His call for a 50% tariff on the EU and a 25% tariff on non-US-produced iPhones generated market unease.
“Therefore, I am recommending a straight 50% Tariff on the European Union, starting on June 1, 2025.”
Markets reacted sharply as Bitcoin’s price dipped from just above $110,000 to $108,400. Major cryptos such as Ether and Solana also faced similar declines, highlighting systemic risk.
Market sentiment has shifted to risk-off, with over $200 million in liquidations reported across key digital assets post-announcement. Analysts hint at Bitcoin possibly trending below $100,000 if uncertainty continues.
Historically, trade tensions have resulted in prolonged crypto market volatility. Similar episodes have previously led BTC to dip notably, aligning with Swyftx analyst Pav Hundal’s forecast.
Analysts suggest waiting for markets to process tariff risks. If macro conditions stabilize, BTC might attempt a significant rally. For now, technical levels remain the focus, with support at $106,000 and resistance at $110,000.
