Trump’s Tariff Threat Halts Bitcoin Rally at $108,000 Amid Global Market Turmoil

The value of the first cryptocurrency plummeted by over 3% within an hour following U.S. President Donald Trump’s threats to impose a 50% tariff on European Union goods starting June 1.

Currently, Washington is engaged in negotiations with Brussels after the initiation of a so-called 90-day tariff truce. According to the Financial Times, the progress made thus far does not meet U.S. expectations.

The head of the White House described the existing $250 billion trade deficit with the EU as «unacceptable.»

Trump highlighted a range of restrictions, including non-monetary barriers, VAT, corporate penalties, currency manipulation, and lawsuits against American companies.

Not long before this, the U.S. president warned Apple that its products would be subject to a 25% tariff if they continued to be manufactured overseas.

Trump’s actions have led to a drastic decline in risk appetite across global financial markets. Shares in European automotive companies dropped by 3.3% to 4.5%, which negatively impacted the local stock market and affected sentiment on Wall Street ahead of the opening. Futures for the S&P 500 are down by 1.5%.

Against this backdrop, gold prices increased by 2%, and demand for sovereign bonds from developed countries rose. Bitcoin fell by 3% and was trading at $108,430 at the time of writing.

The decline among the top 10 digital assets by market capitalization varied from 2.6% to 4%.

In the last 24 hours, liquidation volumes reached $541.5 million, with nearly $400 million attributed to long positions. The volume of forced liquidations in Bitcoin was comparable to that of Ethereum.

On May 22, Bitcoin reached a new high approaching $112,000 as significant inflows into ETFs continued.

JPMorgan noted the strong potential for the first cryptocurrency in its «race» against gold by the end of the year, bolstered by corporate purchases.

Support continues from acquisitions by public companies. On the same day, Michael Saylor’s Strategy filed with the SEC for the issuance of preferred shares worth $2.1 billion, using the proceeds to fund general corporate purposes, including the acquisition of digital gold.

As a reminder, Standard Chartered has urged investors to buy the first cryptocurrency, predicting its price could rise to $120,000 in Q2.