Santiment: Trump's Tariff Threat Disrupts Bitcoin Market Rally
Following last week's record high, BTC is under pressure due to geopolitical tensions and Trump's tariff policies. Trump's tariff threats against the EU caused a slight pullback in BTC, but with Trump's postponement posts over the weekend, BTC has basically oscillated around $109,000 this week.
At the beginning of April, U.S. tariff policies triggered market turbulence, causing Bitcoin prices to drop to around $82,000. Trump raised tariffs on Chinese goods to 104%, exacerbating market volatility and causing Bitcoin prices to plunge to $74,600, resulting in a cryptocurrency trading collapse exceeding $287 million. Subsequently, the White House announced negotiations with over 75 countries regarding tariffs, improving market sentiment and allowing Bitcoin prices to rebound to around $82,000.
As the first week of May came to a close, with the announcement of high-level trade negotiations between the U.S. and China, Bitcoin prices also rebounded from $94,000 to over $97,000. After this, the easing of geopolitical tensions, inflows into exchange-traded funds (ETFs), and increased institutional demand allowed Bitcoin prices to successfully break the $100,000 mark and set a new record high on May 22.
However, on May 23, Trump announced a 50% tariff on EU goods, causing Bitcoin prices to briefly drop to a low of $107,000. But the sell-off quickly subsided, as Trump postponed tariffs on the EU on May 25, citing that negotiations were still ongoing. This positive news led to Bitcoin prices rising back to $109,500.
According to Santiment's analysis, panic sentiment on social media has surged, with retail traders fleeing altcoins, leading to a 300% spike in tariff mentions, marking the largest increase since the market adjustment in April.
Trump's strategy of “threat first, delay later” in the trade war has also caused the market to oscillate between fear and cautious optimism, adding an additional layer of unpredictability to the market.
With the next tariff decision postponed until July 9, this means that Bitcoin's short-term trend will be influenced by geopolitical factors. If Trump continues to push forward with his trade war strategy, the consequences may ripple through stocks, currencies, and of course, cryptocurrencies.
During this time, digital asset traders will navigate the balance between technical optimism and political uncertainty.
