Bitcoin Slumps Below $109K as Trump Proposes New Tariffs Against EU

After a month of calmness on the tariff front and even positive developments between the US and China, the POTUS is back with making threats against (former) partners – this time, solely the EU.

Trump said the talks with the Union are leading to no meaningful results and proposed a straight 50% tariff starting from June 1.

The US President believes the EU was formed for the “primary purpose of taking advantage of the United States” on the trade front, and its multiple barriers have made it difficult for everyday Americans. In fact, he claimed that the Union’s policies have led to a Trade Deficit with the US of more than $250,000,000 per year.

His statement, which went live minutes ago, had a profound and immediate effect on the cryptocurrency markets, as did previous tariff-related announcements.

Bitcoin, which had retraced slightly to $111,000 after yesterday’s all-time high, slumped by a few grand and dipped below $109,000, where it sits at press time as well.

Recall that the asset slumped hard after Trump started the trade war against essentially every country a few months back. BTC bottomed on April 7 and 9 at under $75,000, which was a five-month low.

As the economic situation improved globally, even between the US and China, bitcoin went on the offensive and added over $35,000 in a month and a half to break its January all-time high.

The altcoins have also turned red after Trump’s statement today. His own meme coin is the worst performer on a daily scale, having lost 15% of its value after yesterday’s special dinner.

The total value of liquidated positions has risen to over $450 million, according to CoinGlass. Almost 150,000 over-leveraged traders have been wrecked in the past day.