Cryptocurrencies have seen a sudden dip as Trump proposes a 50% tariff on EU goods.
Bitcoin (BTC) has dropped by 4% while Ethereum (ETH) has dropped by over 3%.
As the market braces for tariffs’ impact, the recently held TRUMP memecoin gala dinner has stirred controversy and market volatility.
The cryptocurrency market, known for its volatility, is now facing fresh uncertainty as US President Donald Trump intensifies global tariff negotiations, sending shockwaves through both traditional and digital financial systems.
Bitcoin (BTC), which recently hit an all-time high of $111,814, has become increasingly sensitive to geopolitical developments, with its price movements closely tracking Trump’s latest trade threats.
Notably, BTC has today experienced a sharp 4% decline, with Ethereum following closely with a 3.2% drop following Trump’s Truth Social post declaring that negotiations with the European Union were “going nowhere,” a statement that immediately rattled markets.
As panic spread, over $300 million in leveraged positions were liquidated, showcasing how digital assets, often viewed as uncorrelated, are becoming more reactive to global policy decisions.
90-day tariff pause almost coming to an end
As the 90-day tariff pause nears its expiry, Trump has proposed a 50% tariff on EU imports, alongside a 25% tariff specifically targeting iPhones manufactured abroad, raising alarms about broader economic implications.
Investors now fear that these tariffs could not only escalate trade tensions but also lead to retaliatory actions from the EU, further complicating global market conditions.
Even though the EU has so far refrained from escalating the situation, the clock is ticking, with a 90-day tariff pause set to expire in July, placing immense pressure on ongoing negotiations.
Only the United Kingdom has finalised a trade agreement so far, and while India is expected to sign within days, other major players remain in a tense waiting game.
Market downturn amid fears of resumption of tariffs
With July just a month away, market watchers like Crypto Caesar now see Bitcoin’s $110,000 level as a key resistance point, with traders emphasising the need for BTC to 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 from the volatility, holding a support level at $2,500 but struggling to breach the persistent resistance at $2,700, even as daily losses extend to 4%.
Notably, the ETHBTC pair continues to drift downward, suggesting weakening momentum in altcoins unless the broader market stabilises or Ethereum regains relative strength.
Pi Coin, another asset under scrutiny, showed signs of upward movement earlier this month but failed to maintain gains above $1.23 due to aggressive short-term selling and long-term investor scepticism.
US tech stocks have mirrored the downturn in crypto, with Apple shares falling amid fears that higher costs could be passed on to consumers, hurting demand and corporate profits alike.
Trump’s involvement in crypto stirs controversy
Amid all this, Trump’s personal involvement in crypto has added an unexpected layer of controversy, culminating in a high-profile gala for top holders of the TRUMP memecoin.
The event, attended by major figures like TRON founder Justin Sun, drew widespread criticism and accusations of corruption, especially as federal lawmakers call for investigations into presidential conflicts of interest in cryptocurrency ventures.
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 spiked to $16 before dropping to $13.81, reflecting how quickly sentiment can shift amid political spectacle and regulatory uncertainty.
While Trump’s supporters argue that his aggressive trade stance is a strategic play to bring manufacturing back to the US, economists warn of rising consumer prices and slower economic growth.
Crypto traders, already bracing for volatility, now find themselves navigating a complex intersection of policy, politics, and profit, where even a single headline can trigger billions in liquidations.
As July approaches and the tariff deadline looms, the crypto market remains on edge, anticipating either a breakthrough in trade talks or another wave of volatility that could reshape investor confidence once again.
