Trump's tariff war once again drags down the price of Bitcoin

Source: CritpoTendencia Original Title: Trump’s tariff war once again drags down Bitcoin price Original Link: This Monday, Bitcoin’s price is once again on the decline as a consequence of the tariff war initiated by U.S. President Donald Trump. The head of state imposed new 10% tariffs on 8 European countries. However, this time the Europeans responded strongly.

The nations of the old continent agreed to retaliate with tariffs totaling around $100 billion against the North American nation. But the matter could escalate, according to Trump’s threats. He assured that tariffs on those European countries could rise to 25% by June 1.

These geopolitical tensions resulting from this new episode caused a dramatic turn in the cryptocurrency market. From recently hovering around $98,000 per coin, Bitcoin’s price now appears to be heading toward a possible bearish trend below $90k. At the time of writing this report, the leading cryptocurrency is experiencing a -2.26% decline in 24 hours, down to $92,963. Meanwhile, the weekly chart shows green numbers, though with less consistency.

Bitcoin Price and Trump’s Unpredictable Politics

What triggered a huge rally of Bitcoin in 2025 (Trump’s linkage) ended up becoming its main obstacle. Since October, the world of cryptocurrencies in general has been unable to recover from the unpredictable trade policies of Trump. The geographic expansionism of the U.S. seems to be the cherry on top, creating a much more volatile environment.

According to economist Peter Schiff, who posted on X, the White House’s offensive is causing trading partners who had shown more patience to react. “Our defeat will be the victory of the whole world,” Schiff remarked.

This context turns into an unbreathable environment for a bullish situation among risk assets like cryptocurrencies and stocks. During Asian market hours, this market generally suffered a -2.54% decline in capitalization, retreating to $3.14 trillion.

Meanwhile, reserve assets such as metals (gold, silver, and palladium) are rising strongly. Gold hit new highs at $4,683 per ounce. At the time of writing this report, the yellow metal reflects a +1.70%. Meanwhile, silver is trading above $93 per ounce after a rally of +5%.

It is expected that stocks on the U.S. stock exchange will plummet starting this Monday. This could increase bearish sentiment among investors, impacting the price of Bitcoin and other cryptocurrencies.

A Bearish Market Rally

One element that cannot be ignored in the current BTC situation is that its rally does not seem driven by real demand. In fact, some portals report that whales have little interest in resuming purchases despite the recent revival of optimism among institutional investors.

However, both traditional whales and, to a greater extent, retail investors are in a position where they do not want exposure to Bitcoin. The recent Bitcoin rally occurred within a bearish market.

In any case, the current bearish pressure causes huge problems across all sectors of the crypto market. Among leveraged derivatives traders, the issue is particularly delicate. In the last 24 hours, long position liquidations have lost $788 millions in liquidations.