Bitcoin falls sharply after Trump calls for a 50% tariff on the European Union. Here is the reaction from global markets.
Why did Crypto crash? Trump's tariff threat causes Bitcoin to plummet.
The cryptocurrency market has sharply declined after President Donald Trump announced a plan to impose "direct tariffs of 50% on the European Union" starting next month. This bold trade threat has sent shockwaves across global markets, particularly impacting risk assets like Bitcoin and altcoins.
The total cryptocurrency market capitalization has dropped by 3% in the past 24 hours, with Bitcoin and major altcoins recording red candles. But why did cryptocurrency suddenly crash like this, and is this the beginning of a deeper correction?
Bitcoin drops after Trump's EU tariff shock.
In a surprising turn of events, President Trump's announcement regarding stalled trade negotiations with the EU came with a bold proposal—50% tariffs starting next month. The cryptocurrency community reacted immediately, viewing this move as a potential catalyst for macroeconomic instability and market volatility.
Bitcoin ( BTC ), often referred to as digital gold during times of turmoil, has failed to act as a safe haven this time. This asset has decreased by 2.27% in the past 24 hours, currently trading at $108,247.81, although it is still up 4.71% over the past week.
The Altcoin market follows Bitcoin down.
Altcoins also fell alongside Bitcoin, with Ethereum ( ETH ), XRP, Solana ( SOL ), and Cardano ( ADA ) all declining on the day:
Ethereum ( ETH ): Down 5.21%, currently trading at $2,550.32, although it has risen 2.75% this week.
XRP: Down 4.57% to $2.33, with some signs of recovery this week at +1.24%.
Solana ( SOL ): Down 3.57% to $175.19, with a 4.44% gain over 7 days.
Cardano ( ADA ): Further declines as it drops 7.50%, trading at $0.7599 and maintaining a stable weekly performance at +0.22%.
Even Dogecoin ( DOGE ), the coin that recently surged alongside meme coins, has plummeted after a strong rise earlier this week.
Political tensions meet the meme coin hype.
Adding fuel to the fire, President Trump also hosted a private dinner for holders of his own top meme coin, $TRUMP, raising eyebrows among some Democrats and questioning the ethics. This event, although symbolic, caused confusion in already anxious markets as investors questioned the merger of political influence and cryptocurrency promotion.
Market outlook: Is this just a pullback?
Despite the crash, the cryptocurrency market remains in a broader bullish structure. Bitcoin is still trading above key support levels and institutional interest remains strong. However, short-term uncertainty due to geopolitical risks—especially trade wars and regulatory speculation—may continue to pressure prices.
The coming days will be crucial. If Bitcoin can hold above the $105K support area and Ethereum protects the $2.5K level, traders may regain confidence. Otherwise, we may see further declines before the market stabilizes.