Bitcoin fell over 2% after President Donald Trump proposed a sweeping 50% tariff on all European Union imports, set to take effect on June 1, 2025.
The unexpected announcement triggered immediate market anxiety, as investors feared worsening trade tensions between the U.S. and its key allies. Over $300 Million in long positions were liquidated within 60 minutes of Trump making this announcement
At the press time, Bitcoin is trading at $108,587.85, down 2.61% as compared to the same time last day.
Bitcoin Leads Losses as Financial Markets React Sharply to Tariff News
Financial markets, including cryptocurrencies, reacted sharply to the news, with Bitcoin leading losses among major digital assets. Analysts warn that escalating trade wars could weaken global economic stability and reduce risk appetite among investors, prompting a flight from volatile assets like crypto.
The proposal marks a significant escalation in Trump’s protectionist rhetoric and has raised concerns about broader economic retaliation from the EU, further fueling uncertainty across global markets.
Also Read: White House Insider: US Government May Leverage Tariff Income to Accumulate Bitcoin Reserve
Trump Accuses EU of Exploiting U.S. with Unfair Trade Practices
President Donald Trump accused the European Union of exploiting the U.S. through unfair trade practices, claiming the EU was “formed to take advantage of the U.S. on trade.”
He cited barriers, VAT schemes, penalties, and alleged currency manipulation as tools used to harm American businesses.
Pointing to a $250 billion annual trade deficit with the EU, Trump said negotiations had stalled and announced a dramatic proposal: a 50% tariff on all EU imports, effective June 1, 2025.
The only exemption would be for goods manufactured within the United States.
The announcement has sparked concern over a potential trade war, with economic analysts warning of increased costs, retaliatory measures, and heightened uncertainty for global markets and supply chains.
Crypto Market Sees Over $300 Million Liquidated in One Hour Amid Sharp Downturn
In a sharp market downturn, over $300 million was liquidated from the crypto market within the past 60 minutes, according to data from major analytics platforms.
The sudden sell-off impacted major cryptocurrencies like Bitcoin and Ethereum, triggering forced liquidations across leveraged positions.
Analysts attribute the plunge to escalating geopolitical tensions and recent policy announcements, which have spooked investors and caused a wave of panic selling.
This rapid liquidation highlights the volatility of the crypto market, especially during times of global economic uncertainty.
Traders are now bracing for further fluctuations as risk sentiment remains fragile across both crypto and traditional markets.
Michael Saylor Highlights Bitcoin’s Resilience Amid Growing Trade Tensions
Michael Saylor, Executive Chairman of MicroStrategy and a prominent Bitcoin advocate, recently emphasized Bitcoin’s resilience amid escalating global trade tensions.
In response to former President Donald Trump’s proposal of a 50% tariff on all European Union imports starting June 1, 2025, Saylor succinctly stated on X (formerly Twitter), “There are no tariffs on Bitcoin”.
This statement emphasizes how decentralized Bitcoin is, making it impervious to conventional trade restrictions and levied taxes by the government.
Saylor’s remark highlights how Bitcoin might be used as a hedge against economic protectionism and geopolitical unpredictability. Bitcoin’s tariff-free status may increase its attractiveness to investors looking for stability and independence from centralized financial institutions as traditional markets respond to changes in policy and trade disputes.
Also Read: Robert Kiyosaki Warns of Global Turmoil, Urges Defense With Bitcoin and Precious Metals