Bitcoin fell sharply on Friday as trade tensions intensified between the U.S. and the European Union, sparking a widespread market selloff.
The world's largest cryptocurrency dropped from over $110,000 to as low as $108,400 after U.S. President Donald Trump announced a proposed 50% tariff on EU imports. The new tariff is scheduled to take effect on June 1.
CoinGlass reported that the increase caused over $200 million in crypto liquidations. At press time, Bitcoin had started to recover slightly, back to $108,637.18 , but other large assets like Ether, Solana, and XRP are all still in the red.
The Truth Social announcement also includes a separate threat to Apple: Trump will impose a 25% tariff on iPhones made overseas. U.S. equities also showed significant declines, led by a crash in Apple.
The S&P 500 is down 0.70% at the time of press.
"I have long ago informed Tim Cook of Apple that I expect their iPhones that will be sold in the United States of America will be manufactured and built in the United States, not India, or anyplace else . If that is not the case, a Tariff of at least 25% must be paid by Apple to the U.S.," said the President.
However, Dr. Kirill Kretov, senior automation expert at CoinPanel, warned, "This might be a trap, not a breakout," on Bitcoin's price action.
Kretov believes this rally is mostly driven by unhedged long exposure, which increases the risk of a liquidity cascade, pushing prices further down.
Some analysts think this tariff talk is a negotiating tactic , like Nansen's Nicolai Sondergaard, who said, "I don't expect these tariffs actually to materialize." He said it shows the crypto market's sentiment fragility in the current macro environment.
However, Bitfinex analysts say, "How Bitcoin reacts to the news by showing strength in the US session today and over the long weekend will be pivotal signs of momentum being carried forward. Bitcoin and ETH rallied on spot demand, clean ETF flows, and improving macro optics. There’s no sign of increased leverage: funding remains neutral, and liquidations remain below $150M, indicating controlled rotation, not panic."
Analysts issue blunt warning on Trump's new tariffs first appeared on TheStreet on May 23, 2025