U.S. President Donald Trump announced a delay in the proposed 50% tariffs on European Union goods, just days ahead of their scheduled implementation. The move has not only cooled fears of a transatlantic trade war, but also lit a fire under risk-on assets, most notably, Bitcoin (BTC), which surged past $109,000 in the immediate aftermath.
The timing of Trump’s announcement couldn’t have been more strategic. With inflation data softening and institutional appetite for crypto on the rise, the removal of an economic headwind catalyzed a new wave of bullish sentiment.
“This is a classic risk reversal. The moment tariffs were pulled back, capital rushed into Bitcoin like a coiled spring,” said macro analyst Olivia Trent at ArcBridge Capital.
Bitcoin Rockets Above $109K: Breaking Down the Rally
Following the Trump’s tariff delay announcement, Bitcoin quickly rallied from $105,300 to a high of $109,480, marking a 3.7% intraday gain and reclaiming territory not seen since its March 2025 highs.
Bitcoin Price Highlights:
Metric Value Current Price $109,120 24-Hour Gain +3.2% Market Cap $2.14 Trillion Trading Volume (24h) $59 Billion Resistance Levels $110K / $115K Support Zones $105K / $102K
Market analysts suggest that BTC could aim for the $115K resistance if this macro momentum sustains. A clean break above this level may confirm a renewed uptrend targeting $130K.
Trump delays EU tariffs
Why Did Bitcoin Respond To Trump’s So Strongly?
Bitcoin’s reaction isn’t just speculative — it’s strategic. Here’s why the Trump’s tariff delay sent crypto soaring:
Reduced Economic Uncertainty: Trump’s Tariffs raise costs and reduce global risk appetite. Their removal signals economic cooperation.
Weaker Dollar Thesis: Investors anticipate less aggressive Fed action due to stable global trade, which is bullish for BTC.
Institutional Entry: ETFs and asset managers view macro easing as a green light to increase crypto exposure.
Altcoins Follow Bitcoin’s Lead
With Bitcoin rallying, the broader market responded in kind:
Coin Price 24h Change Ethereum $5,540 +2.4% Solana $198.20 +3.8% XRP $2.33 +1.9% Dogecoin $0.1832 +2.1% Cardano $0.723 +2.9%
The move marks a shift in risk rotation, with capital flowing from stable assets into crypto and equities, reminiscent of early 2021 market behavior.
Geopolitical Reactions: EU and Crypto Outlook
While EU officials cautiously welcomed Trump’s tariff suspension, it sparked renewed discussion around decentralized trade solutions and crypto-based settlements.
“We need economic frameworks that are not hostage to geopolitics,” noted EU Commission Vice President Margrethe Vestager. “Blockchain offers part of that future.”
The event has also strengthened the case for CBDCs and cross-border crypto rails, especially for Eurozone-based stablecoin pilots.
Trump delays EU tariffs
What’s Next for Bitcoin?
The market is watching closely to see if BTC can close the week above $110K, which would cement this breakout as more than a knee-jerk reaction. Analysts say eyes are also on upcoming U.S. inflation numbers and the FOMC meeting in June, which could further validate this risk-on trend.
Bitcoin Price Scenarios:
Bullish Continuation: $115K → $130K
Sideways: $105K–$110K consolidation
Bearish Reversal: Drop below $102K reintroduces downside risk
Final Thoughts
Trump’s unexpected policy U-turn has reignited optimism across markets, and crypto is clearly leading the charge. Bitcoin’s leap over $109K marks a critical psychological and technical milestone that could open the floodgates to a summer of risk-on appetite.
With macro winds turning favorable and institutional money poised to accelerate inflows, Bitcoin may be setting up for another historic run.
“This could be the moment the crypto market has been waiting for since the start of 2025,” says Kaelin Wu of AmberTree Analytics. “The macro backdrop just flipped.”
Frequently Asked Questions (FAQs)
Why did Bitcoin surge past $109,000?
Bitcoin jumped after Donald Trump delayed the 50% tariffs on EU goods, easing global trade tensions and boosting investor appetite for risk assets.
What is the new Bitcoin price after the tariff delay?
As of May 26, 2025, Bitcoin is trading around $109,120, up 3.2% over 24 hours.
How do tariffs impact the crypto market?
Tariffs create uncertainty and reduce global liquidity. Their removal often triggers bullish momentum in risk assets like cryptocurrencies.
Are altcoins also gaining from the tariff news?
Yes. Altcoins like Ethereum, Solana, and Dogecoin saw gains between 2% and 4% following the announcement.
Could this be the start of a longer Bitcoin rally?
Possibly. If Bitcoin breaks $110K and macro conditions remain favorable, BTC could aim for $115K or even $130K in coming weeks.
Glossary of Key Terms
Tariffs: Government-imposed taxes on imports or exports, often used in trade disputes.
Risk-On Rally: A market environment where investors prefer high-risk, high-reward assets.
ETF (Exchange-Traded Fund): A tradable investment vehicle that tracks an asset like Bitcoin.
Support and Resistance: Technical levels that suggest where price may pause or reverse.
Macro Conditions: Broader economic factors such as interest rates, inflation, and global trade policy.
Altcoins: All cryptocurrencies other than Bitcoin.
Sources:
crypto.news
vtrader.io
WSJ
CoinDesk
MacroMicro – Inflation Outlook
Read More: BTC Pumps on Trump’s Trade Twist, Altcoins Join the Party">BTC Pumps on Trump’s Trade Twist, Altcoins Join the Party
