The cryptocurrency market—known for its volatility—faces fresh uncertainty as U.S. President Donald Trump escalates global tariff negotiations.
Bitcoin (BTC), which had recently flirted with an all-time high near $111,814, has grown more sensitive to geopolitical developments. Price action tracked Mr. Trump’s latest trade threats closely.
Specifically, BTC dropped roughly 4% while Ethereum followed with a roughly 3.2% decline after a Truth Social post from Trump saying talks with the European Union were “going nowhere,” a statement that immediately rattled markets.
As panic spread, leveraged positions exceeding $300 million were liquidated, illustrating that digital assets—once seen as uncorrelated—are reacting increasingly to high-level policy decisions.
90-day tariff pause approaches expiration
With a temporary 90-day tariff pause nearing expiration, Trump proposed a 50% tariff on imports from the European Union and a targeted 25% tariff on iPhones manufactured abroad.
Investors fear these levies could not only heighten trade tensions but also trigger retaliatory measures from the EU, further complicating global market conditions.
Although the EU has so far refrained from escalating the situation, the clock is ticking: the 90-day tariff pause expires in July, creating significant pressure on ongoing negotiations.
To date, only the United Kingdom has reached a trade deal, and while India is expected to sign in the coming days, other major players remain in a tense standoff.
Markets slide amid fear of revived tariffs
With July only weeks away, market watchers such as Crypto Caesar view Bitcoin’s $110,000 level as key resistance. Traders emphasize that BTC must hold above $109,000 to preserve the current bullish structure.
$BTC – #Bitcoin with the retest after President Trump proposes 50% tariff on the European Union starting June 1, 2025. Here we go again. We need to hold the green zone. pic.twitter.com/N9BIHUA18Q
— Crypto Caesar (@CryptoCaesarTA) May 23, 2025
Ethereum (ETH) has not been spared the swings, holding a support area around $2,500 while struggling to break consistent resistance near $2,700. Daily losses expanded toward 4% at times.
Notably, the ETH/BTC pair drifted lower, signaling weakening momentum in altcoins unless the broader market stabilizes or Ethereum regains relative strength.
Pi Coin, another asset under scrutiny, showed early-month upside attempts but failed to sustain gains above $1.23 amid aggressive short-selling and lingering long-term investor skepticism.
U.S. tech stocks mirrored crypto’s slowdown—Apple shares fell amid fears that higher costs could be passed on to consumers.
Trump’s crypto involvement sparks controversy
Trump’s personal engagement with crypto added an unexpected layer of controversy, culminating in a high-profile gala for holders of the TRUMP memecoin.
The event drew notable figures such as Justin Sun, founder of TRON, and prompted widespread criticism and allegations of impropriety. Federal lawmakers have called for investigations into potential conflicts of interest involving the president’s involvement in crypto affairs.
As the top holder of $TRUMP and proud supporter of President Trump, it was an honor to attend the Trump Gala Dinner by @GetTrumpMemes.
Thank you @POTUS for your unwavering support of our industry!#MakeCryptoGreatAgain🇺🇸 pic.twitter.com/Yy2TuWEgzT
— H.E. Justin Sun 🍌 (@justinsuntron) May 23, 2025
After the gala, the TRUMP token spiked to $16 before sliding back to $13.81, reflecting how quickly confidence can shift amid political spectacle and regulatory uncertainty.
Supporters argue that Trump’s aggressive trade posture is a strategic move to bring manufacturing back to the U.S., while economists warn of higher consumer prices and slower economic growth.
Crypto traders, already braced for volatility, are navigating the complex intersection of policy, politics, and profit. A single headline can trigger liquidations totaling billions of dollars.
As July approaches and tariff deadlines loom, the crypto market remains on edge—either awaiting breakthroughs in trade talks or bracing for another wave of volatility that could reshape investor sentiment once again.