Bitcoin fell over 3% to $107.6K after Trump threatened 50% EU tariffs and a 25% tax on Apple for offshore iPhone production.
Tariff-related FUD surged on May 23, driving the highest social buzz since April and directly aligning with Bitcoin's sharp price dip.
Geopolitical tensions from U.S. trade policies continue to impact Bitcoin, showing increased market sensitivity to non-financial news.
Santiment data shows that President Trump's new tariff threats caused Bitcoin's rise to abruptly terminate, causing global markets to tremble just before Memorial Day weekend. Bitcoin fell more than 3% to $107,600 after hitting a record high of $112,000 earlier. Trump announced a 25% tax on Apple products and a 50% duty on all imports from the European Union at the same time as the abrupt drop. The action caused quick market reactions, with the equities and cryptocurrency sectors flinching at the news. As a result of heightened trade tensions, traders immediately moved into defensive positions, reflecting larger fears.
Tariff Fears Drive Social Buzz and Price Volatility
The rise in tariff-related fears boosted social media discussions, according to Santiment data. On May 23, social volume and dominance around tariffs surged to their highest levels since April 9. That date had marked the previous peak in market-wide FUD (Fear, Uncertainty, and Doubt). Additionally, the timing of these discussions directly paralleled Bitcoin’s 3% pullback. Consequently, the price action reflected an increasingly sensitive market response to geopolitical uncertainty.
Source: Santiment
Between March 23 and April 15, tariff-related mentions fluctuated frequently. This period highlighted traders' persistent concerns. However, from April 16 to May 22, mentions decreased as tensions appeared to ease. Bitcoin steadily climbed throughout this window, pushing past $115,000 by mid-May. Additionally, the rising prices and little volatility indicated increased confidence—until May 23 broke the quiet.
Geopolitical Risk Continues to Influence Crypto Markets
Trump’s aggressive stance aims to pressure the EU into better trade terms. His remarks also targeted Apple, criticizing its production shift to India. He warned that unless iPhone manufacturing returns to U.S. soil, Apple will face heavy tariffs. This adds another layer of complexity to a fragile global trade environment.
Besides, such unpredictable policy decisions create ripple effects that extend well beyond equities. Moreover, the crypto market's swift reaction underscores its vulnerability to global politics. Bitcoin, often considered a hedge, is increasingly reactive to news cycles. Hence, traders now face heightened risks, especially from non-financial developments.
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