The cryptocurrency market, already known for its volatility, now faces fresh uncertainty as U.S. President Donald Trump intensifies talks on global tariffs, sending shockwaves through both traditional and digital financial systems.
Bitcoin (BTC), which recently reached an intraday high near $111,814, remains highly sensitive to geopolitical developments. Traders and investors are watching its price action closely as Trump’s latest trade threats influence market sentiment.
Notably, BTC suffered a sharp 4% decline today, with Ethereum following suit and slipping about 3.2% after Trump posted on Truth Social that talks with the European Union “are going nowhere.” The statement immediately rattled markets.
As panic spread, more than $300 million in leveraged positions were liquidated, underscoring how digital assets—often assumed to be uncorrelated—are increasingly reacting to major political decisions.
90-day tariff pause nears expiration
With the 90-day tariff pause about to expire, Trump proposed a 50% tariff on imports from the EU, alongside a targeted 25% tariff on foreign-made iPhones, raising concerns about broader economic fallout.
Investors fear these tariffs could not only escalate trade tensions but also provoke retaliatory measures from the EU, further complicating global market conditions.
So far the EU has held back from an immediate escalation, but the clock is ticking: the 90-day pause expires in July, putting intense pressure on ongoing negotiations.
Only the United Kingdom has finalized a trade deal to date, and while India is expected to sign in the coming days, other major players remain in a tense holding pattern.
Market dip driven by tariff revival fears
With just a month until July, market observers such as Crypto Caesar now view Bitcoin’s $110,000 area as a key resistance level. Traders emphasize that BTC must hold above $109,000 to maintain 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 escaped the volatility: it is holding support near $2,500 but struggling to break resistance around $2,700, with daily losses reaching up to 4%.
Notably, the ETH/BTC pair continues to slide, signaling weakening altcoin momentum unless the broader market stabilizes or Ethereum regains relative strength.
Pi Coin, another asset under observation, showed signs of an uptrend earlier this month but failed to sustain gains above $1.23 amid aggressive short-term selling and lingering long-term investor skepticism.
U.S. tech stocks mirrored the crypto sell-off, with shares of Apple falling amid concerns that higher costs could be passed to consumers, dampering demand and corporate profits.
Trump’s crypto ties stir controversy
Complicating matters further, Trump’s personal involvement in the crypto space introduced an unexpected layer of controversy, culminating in a widely publicized gala for major holders of the TRUMP memecoin.
The event, attended by notable figures including TRON founder Justin Sun, drew heavy criticism and accusations of impropriety. Federal lawmakers have called for investigations into potential presidential conflicts of interest in crypto businesses.
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
Following the gala, the TRUMP token briefly climbed to $16 before slipping back to $13.81, illustrating how quickly sentiment can shift amid political spectacle and regulatory uncertainty.
Supporters claim Trump’s aggressive trade stance is a strategic effort to bring manufacturing back to the U.S., while economists warn it could lead to higher consumer prices and slower economic growth.
Cryptotraders, already preparing for volatility, now find themselves at a complex intersection of politics and profit—where a single headline can trigger billion-dollar liquidations.
As July and the tariff deadline approach, the crypto market remains on edge, awaiting either a breakthrough in trade talks or another wave of volatility that could reshape investor confidence once again.