After a May marked by stability and growth in the stock market, problems are resurfacing on the horizon. This Friday, the price of Bitcoin retreats after several weeks of increases, culminating on Thursday with a record high close to $112,000. The cause of this retreat is the new threats from U.S. President Donald Trump.
In a post on Truth Social, the magnate threatened to impose 50% tariffs on the European Union starting June 1. The talks held during the 90-day period are not yielding the expected results. In the absence of an agreement, the White House is preparing strong sanctions against its European partners, who will likely respond accordingly.
Their powerful trade barriers, VAT, ridiculous corporate sanctions, non-monetary barriers, monetary manipulations, unjust and unfounded lawsuits against American companies, and more, have caused a trade deficit with the U.S. of over $250 billion a year, a completely unacceptable figure.
Donald Trump.
Subsequently, the president confirmed: "Our conversations with them are going nowhere! Therefore, I recommend a 50% tariff on the European Union starting June 1, 2025." This announcement triggered an immediate reaction in the financial markets, with European stock markets recording their worst day since April 9.
Meanwhile, the price of Bitcoin retreats, although with a partial recovery after the initial drop caused by Trump's statements.
Trump resumes his trade offensive against the EU. Source: Truth Social.
The price of Bitcoin shows remarkable consistency
Trump's words indicate that the apparent thaw was just a mirage amid a prolonged trade war. A conflict between the United States and the European Union could severely impact Western markets. It is worth remembering that the European bloc is one of America's main trading partners.
In any case, the stock markets did not react positively to this new episode. In the early hours of the Wall Street session, widespread red numbers were observed. At the time of writing this note, the benchmark SPX index falls to 5,789 points, according to Bloomberg data. At the same time, the yields on 10-year Treasury bonds rise by 0.11% to 4.52%.
The price of gold experiences a rebound of nearly +2%, reaching $3,381 per ounce. Bitcoin, on the other hand, fell from $111,000 to $107,000. However, as investors digest the news, the cryptocurrency recovers ground and surpasses $109,000 again, according to CoinMarketCap.
Bitcoin price seeks stability after Trump’s threat. Source: CoinMarketCap.
This represents a daily drop of nearly -2%. The largest digital currency will likely maintain volatility as investors await new signals from the Trump administration.