Bitcoin Slips as Tariff Tensions Mount—Analysts Urge Caution
Bitcoin slid sharply on Friday amid renewed trade tensions sparked by fresh U.S. tariff threats. The digital asset dropped from above $110,000 to a session low of $108,400 after President Donald Trump announced plans to impose a 50% tariff on European Union imports, set to begin on June 1.
The announcement triggered volatility across markets, with over $200 million in crypto positions liquidated, according to data from CoinGlass. Though Bitcoin showed signs of recovery, rebounding slightly to around $108,637 by press time, major altcoins like Ether and Solana remained under pressure.
The situation escalated further as Trump added a direct warning to Apple, threatening a 25% tariff on iPhones produced outside the U.S. That statement hit U.S. equities, especially tech, pulling the S&P 500 down nearly 0.7% during trading hours.
In his post, Trump emphasized his expectation that Apple manufacture its iPhones domestically, or face the tariff. This added another layer of uncertainty to an already tense macro environment.
Some analysts see the tariff threats as more strategic than substantive. Nicolai Sondergaard of Nansen suggested the announcement may be a negotiation tactic, pointing out how quickly the crypto market responds to geopolitical cues. “The reaction shows how fragile sentiment is in the current environment,” he noted.
Others remain skeptical of Bitcoin’s recent price strength. Dr. Kirill Kretov, from CoinPanel, warned that the rally may be masking hidden risk. “It’s likely being driven by unhedged long positions, which increases the chance of a deeper liquidity-driven drop,” he said.
Still, analysts from Bitfinex struck a more balanced tone, saying the current pullback lacks signs of panic. Funding rates are neutral, and liquidations remain relatively contained. They believe how Bitcoin behaves through the U.S. trading session and long weekend could be key to gauging the trend.