Bitcoin's Bullish Momentum Disrupted by Trump's Tariff Threats: According to Santiment
U.S. President Donald Trump's continued tariff threats, this time targeting the European Union, have stirred volatility in the Bitcoin market despite its recent record-breaking rally. The president's policies have proven to significantly impact Bitcoin's price and the overall cryptocurrency market in the year 2025.
Last week, Bitcoin neared an all-time high of $112,000, but Trump's fresh tariff announcements sent it wobbling, trading sideways around $109,500. The market is grappling with the implications of escalating U.S.-EU trade tensions.
Trump's tariff measures have shown a pattern of injecting market volatility. In early April, the price of Bitcoin dropped to approximately $82,000 following Trump's announcement of a series of tariffs affecting multiple trade partners. He claimed these taxes were necessary to correct deficits between the United States and other countries, with the EU specifically hit with a 20% tax on exports to the U.S.
However, the tariffs didn't last long. After about 24 hours, more than 75 countries contacted the U.S. for tariff negotiations, prompting Trump to lower the taxes to 10%. Despite this concession, products from China still suffered an increase to 125%. This rollercoaster of tariff changes gave Bitcoin a boost, pushing it up to around $82,000 from about $77,000.
As the first week of May closed, news of high-level trade talks between the U.S. and China emerged, spurring Bitcoin past $97,000. It soon broke the $100,000 mark, buoyed by easing geopolitical tensions, exchange-traded fund inflows, and increased institutional demand. However, Trump's announcement of a 50% tariff on EU goods on May 23 brought the market to a halt, with Bitcoin tumbling 4% to $107,500.
The selloff was short-lived, as Trump paused the tariffs just two days later, citing ongoing talks. Bitcoin responded quickly, clawing back to $109,500 as per CoinGecko data.
According to an analysis by Santiment, this "threat-then-delay" tactic, a hallmark of Trump's trade strategy, keeps markets oscillating between fear and cautious optimism. For investors in crypto, where volatility is inherent, this adds another layer of unpredictability to the landscape.
With the next tariff decision now delayed until July 9, Bitcoin's near-term trajectory remains entangled with geopolitics. If Trump proceeds, the fallout could ripple across equities, currencies, and yes, crypto. Until then, digital asset traders are caught between technical optimism and political unpredictability.
Relevant Enrichment Data:- Corporate buying activity, such as GameStop purchasing over $500 million worth of Bitcoin, has been limited due to the prevailing tariff uncertainty.- The ongoing legal challenges and mixed signals around Trump's tariff regime contribute to a complex macroeconomic backdrop for the crypto market.- Trump's tariffs involve high duties on Chinese imports, creating additional uncertainty for global supply chains and market stability. This broader trade tension environment has contributed to price fluctuations in Bitcoin and other cryptocurrencies.
- The recent trade tension between the U.S. and the European Union, instigated by President Trump's tariff threats, has created volatility in the Bitcoin market, affecting its trading price.
- Despite Bitcoin's record-breaking rally, Trump's policies have proven to significantly impact Bitcoin's price in the year 2025, causing fluctuations and oscillations between fear and cautious optimism for crypto investors.
- The crypto market, including Bitcoin, altcoins, and decentralized finance (DeFi) projects, is grappling with the implications of escalating U.S.-EU trade tensions on business and general news.
- The ongoing uncertainty surrounding corporate buying activity, such as GameStop's purchases of Bitcoin, is further complicated by Trump's tariff regime, contributing to a complex macroeconomic backdrop for the crypto market.
- With Trump's next tariff decision delayed until July 9, the overall cryptocurrency market, including Bitcoin, faces an uncertain near-term trajectory, with potential ripple effects on equities, currencies, and other digital assets due to political unpredictability.
