⚠️ Bitcoin Drops as Trump Revives Tariff Threats — PCE Data Offers Little Relief

Markets wobbled Friday as Bitcoin fell 1% and Ethereum slipped 2.5%, weighed down by a mix of Trump’s renewed China tariff rhetoric and underwhelming inflation data.

🔍 Here’s what happened:

📊 US April Core PCE (the Fed’s preferred inflation gauge) came in at:

• 2.5% YoY, in line with expectations (down from 2.7%)

• Overall PCE: 2.1% YoY, missing forecasts of 2.2%

• Monthly change: +0.1% for both core and headline

Despite the data being mostly as expected, hopes for imminent Fed rate cuts have dimmed.

🧨 Then Trump stirred the pot:

“China has completely violated its agreement with the US… No more Mr. Nice Guy!” – Trump on Truth Social

• Trump accused China of breaching the US-China trade pact.

• He threatened 145% tariffs, warning it would place China in “grave economic danger.”

• Claimed he had made a “fast deal” to prevent public upheaval in China during his term.

🔻 Result?

Crypto markets, which held steady after the PCE release, quickly turned red as risk sentiment soured heading into the weekend — a pattern that’s repeated since Trump’s February tariff comments on Canada and Mexico.

📉 Key Market Moves:

• BTC: -1.0%

• ETH: -2.5%

• Broader risk assets also saw weakness on reports of potential new tech sanctions on China.

✅ Takeaway:

While inflation appears to be cooling gradually, geopolitical risks are back in focus. Traders should stay alert for weekend volatility, especially with Trump back in headlines.

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