Bitcoin Price Drops Amid Tariff Controversy
The price of Bitcoin has experienced a significant decline, plummeting to a low of $107,385 on Friday amid broader market concerns following President Donald Trump’s tariff announcements. As the equity markets suffered, cryptocurrencies followed suit, with Bitcoin losing steam alongside Wall Street.
Market Reactions and Liquidations
Bitcoin (BTC) dropped over 2.7% on Friday after Trump suggested a 50% tariff on European Union (EU) goods. This announcement pushed global stocks downward, and Bitcoin fell below $110,000 before rebounding slightly to over $109,600, following a minor recovery in the Dow Jones Industrial Average.
Data from Coinglass reported that over $550 million in liquidations took place within a 24-hour period, with long positions accounting for more than $395 million. Notably, around $309 million of these longs were liquidated shortly after Trump’s comments were made public on his Truth Social platform.
During this tumultuous trading period, Bitcoin’s 24-hour losses stood at approximately 1.7%, with daily trading volume dropping by 30% to $65.5 billion. The cryptocurrency’s market capitalization hovered around $2.17 trillion.
Trump’s Trade Policy Announcement
On Friday, President Trump expressed frustration with the stalled trade negotiations with the EU, describing the bloc as “very tough to deal with.” He proposed a proposed “tariff of 50%” on EU imports effective June 1, 2025, criticizing the EU for its stringent trade barriers and unfair practices that contribute to an annual trade deficit exceeding $250 billion with the United States.
Bitcoin’s Price Recovery Attempts
The announcement and subsequent market reaction led to a decline in Bitcoin, which had recently reached an all-time high above $111,000. Despite the drop, Bitcoin has made strides back to over $109,000, with experts like Anthony Pompliano predicting that retail investors will likely buy the dip, as they have done following previous tariff-related sales.
Every time the market dumps because of tariff threats, retail investors are going to buy the dip.
Law of the universe at this point.
— Anthony Pompliano 🌪 (@APompliano) May 23, 2025
As of this report, Bitcoin is trading at approximately $109,692.
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