- Cryptocurrencies have seen a sudden dip as Trump proposes a 50% tariff on EU items.
- Bitcoin (BTC) has dropped by 4% whereas Ethereum (ETH) has dropped by over 3%.
- As the market braces for tariffs’ impact, the lately held TRUMP memecoin gala dinner has stirred controversy and market volatility.
The cryptocurrency market, recognized for its volatility, is now going through recent uncertainty as US President Donald Trump intensifies global tariff negotiations, sending shockwaves via each conventional and digital monetary techniques.
Bitcoin (BTC), which lately hit an all-time excessive of $111,814, has develop into more and more delicate to geopolitical developments, with its worth actions intently monitoring Trump’s newest commerce threats.
Notably, BTC has today experienced a sharp 4% decline, with Ethereum following intently with a 3.2% drop following Trump’s Truth Social publish declaring that negotiations with the European Union had been “going nowhere,” an announcement that instantly rattled markets.
As panic unfold, over $300 million in leveraged positions had been liquidated, showcasing how digital belongings, typically seen as uncorrelated, have gotten extra reactive to global coverage choices.
90-day tariff pause nearly coming to an finish
As the 90-day tariff pause nears its expiry, Trump has proposed a 50% tariff on EU imports, alongside a 25% tariff particularly concentrating on iPhones manufactured overseas, elevating alarms about broader financial implications.
Investors now concern that these tariffs couldn’t solely escalate commerce tensions but additionally result in retaliatory actions from the EU, additional complicating global market circumstances.
Even although the EU has thus far avoided escalating the state of affairs, the clock is ticking, with a 90-day tariff pause set to run out in July, inserting immense stress on ongoing negotiations.
Only the United Kingdom has finalised a commerce settlement thus far, and whereas India is predicted to signal inside days, different main gamers stay in a tense ready sport.
Market downturn amid fears of resumption of tariffs
With July only a month away, market watchers like Crypto Caesar now see Bitcoin’s $110,000 degree as a key resistance level, with merchants emphasising the necessity for BTC to carry above $109,000 to protect the present bullish construction.
$BTC – #Bitcoin with the retest after President Trump proposes 50% tariff on the European Union beginning June 1, 2025. Here we go once more. We want to carry the inexperienced zone. pic.twitter.com/N9BIHUA18Q
— Crypto Caesar (@CryptoCaesarTA) May 23, 2025
Ethereum (ETH) has not been spared from the volatility, holding a assist degree at $2,500 however struggling to breach the persistent resistance at $2,700, whilst every day losses lengthen to 4%.
Notably, the ETHBTC pair continues to float downward, suggesting weakening momentum in altcoins except the broader market stabilises or Ethereum regains relative power.
Pi Coin, one other asset below scrutiny, confirmed indicators of upward motion earlier this month however failed to keep up positive factors above $1.23 on account of aggressive short-term promoting and long-term investor scepticism.
US tech shares have mirrored the downturn in crypto, with Apple shares falling amid fears that greater prices might be handed on to customers, hurting demand and company earnings alike.
Trump’s involvement in crypto stirs controversy
Amid all this, Trump’s private involvement in crypto has added an sudden layer of controversy, culminating in a high-profile gala for prime holders of the TRUMP memecoin.
The occasion, attended by main figures like TRON founder Justin Sun, drew widespread criticism and accusations of corruption, particularly as federal lawmakers name for investigations into presidential conflicts of curiosity in cryptocurrency ventures.
As the highest holder of $TRUMP and proud supporter of President Trump, it was an honor to attend the Trump Gala Dinner by @GetTrumpMemes.
Thank you @POTUS for your unwavering assist of our trade!#MakeCryptoGreatAgain🇺🇸 pic.twitter.com/Yy2TuWEgzT
— H.E. Justin Sun 🍌 (@justinsuntron) May 23, 2025
Following the gala, the TRUMP token spiked to $16 earlier than dropping to $13.81, reflecting how rapidly sentiment can shift amid political spectacle and regulatory uncertainty.
While Trump’s supporters argue that his aggressive commerce stance is a strategic play to deliver manufacturing again to the US, economists warn of rising client costs and slower financial progress.
Crypto merchants, already bracing for volatility, now discover themselves navigating a fancy intersection of coverage, politics, and revenue, the place even a single headline can set off billions in liquidations.
As July approaches and the tariff deadline looms, the crypto market stays on edge, anticipating both a breakthrough in commerce talks or one other wave of volatility that would reshape investor confidence as soon as once more.
