Crypto market braces for impact amid Trump’s tense global tariff negotiations

• 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.