Market News

EU Tariff Threat from Trump Causes Bitcoin to Dip Below $109K

Bitcoin's price has faced a significant decline, dropping nearly 4% as markets react to President Trump's latest tariff threats against the European Union.

This volatility occurred just as Bitcoin reached new heights, hitting an all-time high of $111,970 before the announcement of a proposed 50% tariff on EU goods.

In the immediate aftermath, the cryptocurrency fell to lows around $107,367, reflecting a broader market turmoil that also impacted traditional stocks.

Traders are now cautious, closely monitoring resistance levels, especially the crucial $110,000 mark that bulls are eager to maintain to foster bullish sentiment.

The wider cryptocurrency market experienced a 1.63% decline, shrinking its capitalization to approximately $3.45 trillion, while the S&P 500 and Nasdaq also reported losses of up to 1.2%.

Liquidation data revealed that traders experienced substantial losses, with over $350 million in liquidations within a four-hour span, reflecting anxiety over leveraged positions.

Despite the recent downturn, Bitcoin remains strong compared to previous weeks, up 4.35% over the last seven days.

Analysts are observing how the tariff announcement affects investor sentiment, with many noting a shift in dynamics as institutional interest swells.

As the geopolitical landscape continues to evolve, traders are tasked with navigating these uncertain waters while assessing the impact of policy changes on cryptocurrency values.

Investors are urged to remain vigilant and informed, as shifts in market trends can occur rapidly in response to macroeconomic developments.