Bitcoin (BTC) registered a sharp decline on Friday after President Donald Trump threatened an imminent 50% tariff on all EU imports and a 25% levy on all imported Apple iPhones.
The flagship cryptocurrency dropped nearly 4% on Friday, plunging to a low of $106,816 before rebounding to current levels. BTC is down over 2% in the past 24 hours, trading around $108,200.
Bitcoin (BTC) And Altcoins Register Sharp Decline
Bitcoin (BTC) plunged to a low of $106,816 on Friday, erasing substantial gains made earlier this week. The crash coincided with the sell-off in the stock market as futures tied to the Dow Jones, S&P 500, and Nasdaq 100 fell over 1%, continuing a sell-off that began on Monday. The crypto market retreated as trade war concerns emerged after a Truth Social post in which President Trump said trade talks with the EU were going nowhere and warned of a 50% tariff on all goods from the region. The statement escalated trade tensions at a time when markets were hoping for a deal between the trade partners.
The EU has hinted it will respond by hiking tariffs on US goods, including Boeing jets. Ryanair’s CEO has already warned the company is considering canceling a $33 billion order from Boeing and switching to Airbus if Boeing planes are hit by tariffs. The trade war concerns return a week after Moody’s downgraded the US credit rating and as the House of Representatives voted on the “Big Beautiful Bill” which will increase US debt by over $3.8 trillion in a decade.
Spot Bitcoin ETFs Register Strong Inflows
US spot Bitcoin ETFs registered a total of $2.75 billion in inflows this week as Bitcoin surged past $110,000 and set a new all-time high. The inflows were almost 4.5 times larger than the previous week’s inflows of $608 million, according to data from Farside. Spot Bitcoin ETFs registered inflows of $211 million on May 23. However, BlackRock’s IBIT was the only fund that posted gains during the trading day, adding $430 million and extending its inflow streak to eight consecutive days. Meanwhile, Grayscale saw outflows of $89 million, while ARK21 Shares saw outflows worth $73.9 million.
Only two days prior, Bitcoin ETFs registered $607 million in inflows, the same day the flagship cryptocurrency surged past its previous all-time high. However, BTC registered a sharp decline on Friday as market sentiment declined. Meanwhile, analysts have pointed out that Bitcoin is not showing any signs of overheating despite surging to a new all-time high, indicating the price could rise higher. An analyst from CryptoQuant stated,
“Overheating indicators such as the funding rate and short-term capital inflow remain low compared to previous peaks, and profit-taking by short-term investors is limited.”
Bitcoin (BTC) Price Analysis
Bitcoin (BTC) raced to a new all-time high on Thursday, rising to $111,970 as it finally crossed the $110,000 mark. The flagship cryptocurrency consolidated around higher levels as it entered a price discovery phase after crossing into uncharted territory. Analysts expected BTC to continue its uptrend and push towards $115,000 and possibly $120,000. However, markets turned bearish on Friday after President Trump threatened to impose 50% tariffs on all goods imported from the European Union after posting on Truth Social that trade talks with Europe were not going anywhere. The EU also threatened retaliatory tariffs as trade war tensions resurfaced, panicking markets. As a result, the flagship cryptocurrency plunged nearly 4% on Friday, falling to an intraday low of $106,816.
BTC traded in a narrow range between $100,000 and $105,000 as buyers struggled to build momentum. The price declined 1.04% on Monday (May 12), before rebounding on Tuesday, rising 1.36% to $104,123. The price fell back into the red on Wednesday after a marginal decline and settled at $103,568. BTC plunged to an intraday low of $101,459 on Thursday as selling pressure intensified. However, it rebounded from this level to register a marginal increase and settle at $103,816. Price action turned bearish on Friday and Saturday as BTC registered marginal declines and settled at $103,235. Despite the selling pressure, the price recovered on Sunday, rising over 3% to cross $106,000 and settle at $106,489.
Source: TradingView
BTC started the current week in the red, facing considerable selling pressure. As a result, the price plunged to an intraday low of $102,135 before recovering to settle at $105,572, ultimately registering a drop of nearly 1%. Despite the negative start to the week, the price rebounded on Tuesday, rising 1.21% to $106,854. BTC continued to push higher on Wednesday, rising 2.57% to cross $109,000 and settle at $109,603. BTC raced to a new all-time high on Thursday, reaching an intraday high of $111,970 before settling at $111,582. However, price action turned bearish on Friday as markets plunged. As a result, BTC fell nearly 4%, slipping below $110,000 and settling at $107,356. The current session sees BTC up almost 1% as it looks to build momentum and reclaim $110,000.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
