tl;dr
Bitcoin's recent rally near $112,000 was disrupted by U.S. President Donald Trump's tariff threats against the European Union, causing market volatility. Earlier tariff announcements in April led to Bitcoin dropping from $82,000 to $74,600, before partial tariff rollbacks helped it recover. Positive...
Bitcoin's recent record rally encountered turbulence due to U.S.-EU tariff threats by President Trump, which caused significant price fluctuations amid escalating trade tensions.
Earlier tariff hikes in April drove Bitcoin's price down from $82,000 to $74,600, but subsequent negotiations and easing tariffs helped the cryptocurrency recover temporarily.
Anticipation of U.S.-China trade talks, combined with inflows from exchange-traded funds (ETFs) and rising institutional demand, propelled Bitcoin above $100,000, reaching a new all-time high on May 22.
However, President Trump's abrupt announcement on May 23 of a 50% tariff on EU goods triggered a swift 4% decline in Bitcoin’s price to $107,500, alongside substantial selloffs in altcoins such as Monero and Hyperliquid. This reaction reflected widespread market panic and a retreat by retail traders.
The tariff imposition was short-lived; by May 25, the tariffs were paused amid continuing talks, prompting Bitcoin to rebound to approximately $109,500. This sequence highlighted the market’s sensitivity to Trump's characteristic “threat-then-delay” trade tactics, which generate oscillating sentiment between fear and optimism.
Bitcoin’s near-term price trajectory remains uncertain and heavily contingent on geopolitical developments, particularly the tariff decision anticipated on July 9. Analysts underscore that such geopolitical risk adds complexity to Bitcoin’s price outlook, which is already influenced by global macroeconomic trends more than ever before.
The April tariff actions caused Bitcoin to waver sharply, with over $287 million in crypto trades affected during the dip to $74,600. Positive signals like the planned U.S.-China trade talks and robust institutional ETF inflows lifted Bitcoin past notable milestones, but sudden tariff announcements continue to inject volatility.
Social media analysis revealed a 300% spike in "tariff" mentions and increased panic among retail investors during the May selloffs, emphasizing how geopolitical news can swiftly sway market sentiment.
As traders weigh the balance between technical optimism and political unpredictability, Bitcoin hovers around $109,500, awaiting further clarity on trade relations and tariff implementations scheduled for early July.