#TrumpTariffs

Bitcoin (BTC) has experienced significant volatility following President Donald Trump's announcement of a 50% tariff on all European Union (EU) imports, effective June 1, 2025. This policy shift has unsettled global markets, leading to a notable downturn in cryptocurrency prices.

The broader cryptocurrency market has also been affected, with Ethereum (ETH), XRP, and Solana (SOL) experiencing declines between 3% and 4%. The overall market capitalization decreased by approximately 10.58% within 24 hours, dropping to $2.4 trillion.

Analysts attribute this downturn to increased economic uncertainty and a shift in investor sentiment towards risk-off assets. Historically, Bitcoin has shown a strong correlation with traditional markets, and current trends suggest a continuation of this pattern. Some experts predict that if Bitcoin fails to maintain support at current levels, it could decline further towards the $65,000–$70,000 range.

It's important to note that the United Kingdom is exempt from these new tariffs due to its exit from the EU, potentially positioning it as a more attractive trade partner for the U.S.

Given the current market conditions, investors are advised to exercise caution and closely monitor developments in trade policies and their potential impact on both traditional and cryptocurrency markets.