Bitcoin’s wild ride continued Friday as the world’s top cryptocurrency slipped beneath the $109,000 mark. The trigger? Former President Donald Trump’s bombshell announcement of a potential 50% tariff on all goods imported from the European Union. This move sent shockwaves through both traditional and crypto markets, proving once again that global politics and digital assets are more connected than ever.
#1
On Thursday afternoon, Bitcoin soared to a new all-time high of $111,970.17. But by Friday morning, the mood had shifted. Trump’s social media post, threatening sweeping tariffs on EU imports starting June 1, 2025, rattled investors. The result: a sharp sell-off across the board.
Here’s how the numbers shook out:
Market
Bitcoin (BTC) - 2.64 % Change
Crypto Market Cap - 1.63% Change
S&P 500 - 0.74%
Nasdaq - 0.96%
Dow Jones - 0.58%
Apple Stock - 2.53%
Trump didn’t stop at the EU. He also floated a 25% import tax on Apple iPhones not made in the U.S., sending Apple’s stock tumbling.
The “Trump Effect” Hits Crypto and Stocks
On Thursday afternoon, Bitcoin soared to a new all-time high of $111,970.17. But by Friday morning, the mood had shifted. Trump’s social media post, threatening sweeping tariffs on EU imports starting June 1, 2025, rattled investors. The result: a sharp sell-off across the board.Here’s how the numbers shook out:
Market
Bitcoin (BTC) - 2.64 % Change
Crypto Market Cap - 1.63% Change
S&P 500 - 0.74%
Nasdaq - 0.96%
Dow Jones - 0.58%
Apple Stock - 2.53%
Trump didn’t stop at the EU. He also floated a 25% import tax on Apple iPhones not made in the U.S., sending Apple’s stock tumbling.
#2
What’s Behind the Tariff Threat?
Trump’s statement on Truth Social accused the EU of taking advantage of the U.S. in trade. He called for a “blanket 50% tariff” on all EU imports, effective June 1, 2025. While the policy isn’t in effect yet, the threat alone was enough to jolt global markets and spark uncertainty.
#3
Despite the drop, Bitcoin’s price remains close to its all-time highs—a sign of underlying strength. Here’s a quick breakdown of the latest crypto stats:
- 24-hour BTC price range: $107,385.27 – $111,970.17
- BTC market cap: Down 1.87% to $2.17 trillion
- BTC dominance: Down slightly to 63.98%
- 24-hour trading volume: Down 25.83% to $65.68 billion
Crypto Market Metrics: A Closer Look
Despite the drop, Bitcoin’s price remains close to its all-time highs—a sign of underlying strength. Here’s a quick breakdown of the latest crypto stats:- 24-hour BTC price range: $107,385.27 – $111,970.17
- BTC market cap: Down 1.87% to $2.17 trillion
- BTC dominance: Down slightly to 63.98%
- 24-hour trading volume: Down 25.83% to $65.68 billion
#4
A small dip in Bitcoin’s dominance hints that some investors may be rotating funds into altcoins, searching for safer ground or new opportunities as volatility spikes.
Derivatives Market: Bulls Take a Hit
The derivatives market also felt the heat. Open interest in Bitcoin futures dropped 3.12% to $78.04 billion, suggesting traders are dialing back on leveraged bets.
- Total liquidations: $3.72 million
- Long positions: $3.28 million wiped out
- Short positions: $440,650 liquidated
The data reveals that bullish traders—those betting on further price rises—took the brunt of the losses. This correction is a stark reminder of the risks of over-leveraging during volatile periods, especially when political headlines can move markets in an instant.
Altcoins and Market Shifts
A small dip in Bitcoin’s dominance hints that some investors may be rotating funds into altcoins, searching for safer ground or new opportunities as volatility spikes.Derivatives Market: Bulls Take a Hit
The derivatives market also felt the heat. Open interest in Bitcoin futures dropped 3.12% to $78.04 billion, suggesting traders are dialing back on leveraged bets.
- Total liquidations: $3.72 million
- Long positions: $3.28 million wiped out
- Short positions: $440,650 liquidated
The data reveals that bullish traders—those betting on further price rises—took the brunt of the losses. This correction is a stark reminder of the risks of over-leveraging during volatile periods, especially when political headlines can move markets in an instant.
#5
Key Factors at Play:
- Investor Sentiment: Fear of a trade war can lead to risk-off behavior—investors sell off riskier assets like crypto.
- Stock Market Correlation: As stocks fall, crypto often follows, especially when the sell-off is triggered by macroeconomic events.
- Global Liquidity: Tariffs can slow economic growth, potentially reducing the flow of money into speculative assets.
Why Are Tariffs Such a Big Deal for Crypto?
Tariffs impact global trade, corporate profits, and consumer prices. When a major economy like the U.S. threatens sweeping tariffs, it injects uncertainty into financial markets. For crypto, which thrives on global participation and sentiment, this kind of headline risk can trigger rapid price swings.Key Factors at Play:
- Investor Sentiment: Fear of a trade war can lead to risk-off behavior—investors sell off riskier assets like crypto.
- Stock Market Correlation: As stocks fall, crypto often follows, especially when the sell-off is triggered by macroeconomic events.
- Global Liquidity: Tariffs can slow economic growth, potentially reducing the flow of money into speculative assets.
#6
Apple was specifically targeted in Trump’s remarks, with a proposed 25% import tax on iPhones not made in the U.S. The company’s stock slid 2.53% on the news, highlighting how trade tensions can ripple through tech giants and, by extension, the broader market.
Apple in the Crosshairs
Apple was specifically targeted in Trump’s remarks, with a proposed 25% import tax on iPhones not made in the U.S. The company’s stock slid 2.53% on the news, highlighting how trade tensions can ripple through tech giants and, by extension, the broader market.
#7
The crypto world is no stranger to volatility, but the latest dip shows just how sensitive digital assets are to global politics. With the proposed tariffs set to take effect June 1, 2025, all eyes will be on Washington and Brussels for further developments.
What’s Next for Bitcoin and the Markets?
The crypto world is no stranger to volatility, but the latest dip shows just how sensitive digital assets are to global politics. With the proposed tariffs set to take effect June 1, 2025, all eyes will be on Washington and Brussels for further developments.
#8
If negotiations cool tensions: Markets could rebound, with Bitcoin possibly retesting its highs.
Key Takeaways:
- Trump’s tariff threat sent Bitcoin and stocks tumbling, highlighting the power of political headlines.
- Bitcoin remains strong near record highs, despite the drop.
- Leverage is risky: Many bullish traders were liquidated as the market corrected.
- Altcoins may benefit as investors diversify during uncertainty.
- Apple and other multinationals are directly in the firing line of new trade policies.
Potential Outcomes:
If tariffs are implemented: Expect more volatility in both traditional and crypto markets.If negotiations cool tensions: Markets could rebound, with Bitcoin possibly retesting its highs.
Key Takeaways:
- Trump’s tariff threat sent Bitcoin and stocks tumbling, highlighting the power of political headlines.
- Bitcoin remains strong near record highs, despite the drop.
- Leverage is risky: Many bullish traders were liquidated as the market corrected.
- Altcoins may benefit as investors diversify during uncertainty.
- Apple and other multinationals are directly in the firing line of new trade policies.
#9
A: The drop was triggered by Donald Trump’s announcement of a potential 50% tariff on EU goods, which spooked global markets and led to a sell-off in both stocks and crypto.
Q: Are the tariffs in effect now?
A: No, the tariffs are only a proposal for now, set to possibly take effect June 1, 2025.
Q: How did other markets react?
A: U.S. stock indices and Apple’s stock also fell, showing the broad impact of the announcement.
Q: What should crypto investors watch next?
A: Keep an eye on political developments and trade negotiations, as these will likely drive further volatility.
FAQ
Q: Why did Bitcoin drop below $109,000?A: The drop was triggered by Donald Trump’s announcement of a potential 50% tariff on EU goods, which spooked global markets and led to a sell-off in both stocks and crypto.
Q: Are the tariffs in effect now?
A: No, the tariffs are only a proposal for now, set to possibly take effect June 1, 2025.
Q: How did other markets react?
A: U.S. stock indices and Apple’s stock also fell, showing the broad impact of the announcement.
Q: What should crypto investors watch next?
A: Keep an eye on political developments and trade negotiations, as these will likely drive further volatility.
