Bitcoin, which had recently pushed to new highs, tumbled to $108,500, marking a 2.7% drop in 24 hours. The steep fall wiped out recent gains and sent a wave of concern through digital asset investors. At the same time, Bitcoin’s market cap now stands at $2.15 trillion, with a 24-hour trading volume of $39.37 billion.
Bitcoin Crash After Trump’s EU Tariff Threat
Bitcoin plunged to around $108,500, down 2.7% in the past 24 hours, following President Trump’s surprise announcement of new EU tariffs.
Over $130 billion in total cryptocurrency market capitalization was wiped out within hours of the news.
Major altcoins also suffered steep declines, with Ethereum (ETH), Ripple (XRP), and Solana (SOL) all recording significant losses.
Key Bitcoin technical levels:
- Support: $107,252, $106,080, $104,145
- Resistance: $110,282, $111,877, $113,943
Trump’s latest move — a 50% tariff on all European Union imports — is set to take effect on June 1, 2025, reigniting fears of a prolonged trade conflict.
Global market reaction:
- European indices, including Germany’s DAX and France’s CAC 40, saw sharp declines.
- U.S. markets followed suit, with the S&P 500 and Dow Jones both falling notably.
Why did Bitcoin fall after Trump’s EU tariff announcement?
President Trump’s unexpected tariff decision jolted global financial markets. He stated that negotiations with the EU were “leading nowhere,” and his administration would impose a 50% import tax on EU goods from June 1.
Crypto investors were quick to react. Global uncertainty and trade tension often drive risk-off behavior, and that’s exactly what happened — with Bitcoin and other top cryptocurrencies like Ethereum and Solana seeing sharp pullbacks.
Where is Bitcoin’s support now after dropping below $109K?
As of now, Bitcoin is holding around $108,500, but that level is fragile. The first critical support lies at $107,252. If Bitcoin breaks below that, the next key support is at $106,080, and if pressure continues, it could slide further down to $104,145.
These levels are being closely monitored by technical analysts and day traders, as a breach could signal deeper losses.
Can Bitcoin recover or is another dip coming?
There’s a path to recovery — but it won’t be easy. To regain upward momentum, Bitcoin needs to break through $110,282, which is its first major resistance level. Beyond that, the next hurdles are at $111,877 and $113,943.
If Bitcoin clears these zones, we could see sideways movement or even a short-term bullish run. But if it fails to hold above support, the current downtrend may worsen.
What should traders focus on during this volatile period?
This kind of news-driven volatility calls for caution. Traders should wait for clear breakouts before entering positions. Watching support and resistance levels closely is key, and combining technical tools like moving averages can help spot better entry or exit points.
The market may move sideways in the short term, but continued uncertainty around U.S.-EU trade could keep pressure on Bitcoin’s price.
How will President Trump’s tariff decision impact the broader crypto space?
Trump’s aggressive tariff approach adds fresh uncertainty to the global economy — and that ripples into crypto. Already, major coins dropped in sync with Bitcoin. If the EU retaliates, or if tensions spread to other trading partners, the crypto market may see more volatility in the days ahead.
While Bitcoin still has strong fundamentals, political moves like this one show how much global news can shake short-term sentiment.
The Bitcoin price crash came fast and sharp after President Trump’s 50% EU tariff announcement. As of now, Bitcoin trades below $109K, with support levels being tested and traders watching closely for the next move. Whether we see a bounce or another dip depends on how the market digests this major geopolitical event.
FAQs:
Q: Why did Bitcoin crash after Trump’s EU tariff news?
A: Bitcoin dropped as markets reacted to Trump’s surprise 50% EU import tax, causing uncertainty.
Q: What are Bitcoin’s key levels after this sell-off?
A: Bitcoin’s support is near $107,252; resistance lies around $110,282 and $111,877.
