Before President Trump reignited what had been cooling trade tensions, Bitcoin blasted through $111,000 yesterday, setting a new all-time high. But the President’s threat of new tariffs against the EU and Apple sparked a retreat to near $108,000 today. Renewed Trade War Fears Rattle Crypto Prices Bitcoin quickly reversed after Trump proposed a 50% tariff on imports from the European Union starting next month. Over the past 24 hours, Bitcoin nosedived 2.2% to hit $108,319 lows before rebounding slightly to $108,438 at press time, according to crypto data provider CoinGecko. “Our discussions with them are going nowhere!” Trump wrote in a post on Truth Social. “Therefore, I am recommending a straight 50% Tariff on the European Union, starting on June 1, 2025.” Trump also threatened Apple, the $3 trillion iPhone maker, stating that iPhones sold in America must be built domestically or face a 25% tariff. The ultimatum to Apple CEO Tim Cook appeared aimed at the tech giant’s extensive overseas manufacturing footprint. Bitcoin’s pullback came less than 24 hours after it smashed a new all-time high of $111,980, exceeding the previous record of nearly $109K set in January. The Bitcoin price had been on a tear following its increasing correlation with gold, a traditional safe-haven asset, and growing concerns about Japan’s and the US’s fiscal health. Moreover, increased corporate and institutional allocation, including frequent BTC buys by publicly traded companies like Strategy and MARA Holdings, alongside positive inflows into US-listed spot Bitcoin ETFs, further strengthens Bitcoin’s market position. Bitcoin’s recent correction reflects cautious sentiment among traders. The crypto market’s knee-jerk reaction implies that cryptocurrencies remain sensitive to macroeconomic and political developments. “$BTC There’s the break from the compression with a push from Trump. Markets worldwide obviously not liking the news,” widely-followed crypto trader Daan Crypto Trades opined in a post on X. “Will have to see where this settles today and how BTC ends up performing relative to equities now the trade uncertainty is back.” Ether (ETH) and other major altcoins were sliding, too. ETH has lost 2.9% of its value since yesterday and is currently trading for just above $2,562. XRP has fallen 2.5% over the last 24 hours and is currently trading for $2.37. Meanwhile, the leading meme coin Dogecoin (DOGE) was down 2.1% during the same period, changing hands at $0.2360 as of publication time.
