Bitcoin (BTC) has dropped below the $110,000 mark, currently trading at $108,073.89, reflecting a 2.54% decline in the past hour and 2.80% over the past 24 hours at the time of writing.
Ethereum (ETH) and XRP have followed a similar downward trajectory, with ETH priced at $2,531.85 (down 4.47% in 24h) and XRP at $2.33 (down 3.84% in 24h).
While short-term volatility is common in the crypto market, one major geopolitical development may be intensifying the sell-off: Former President Donald Trump’s announcement of a proposed 50% tariff on European Union goods. In a Truth Social post on Friday, Trump cited stalled trade negotiations and accused the EU of unfair practices, recommending the tariff take effect from June 1, 2025.
This aggressive stance triggered a sharp drop in European markets, with Germany’s DAX and France’s CAC both falling over 2.6%, and the UK’s FTSE down 1.3%. Such geopolitical tensions and market reactions can spill over into the crypto sector, as investors brace for wider economic instability and risk-off sentiment.
As always, the crypto market remains highly sensitive to macroeconomic signals and geopolitical developments.
Kosta Gushterov
Reporter at Coindoo
Kosta has been a part of the team since 2021 and has solidified his position with a thirst for knowledge, incredible dedication to his work and a “detective-like” mindset. He not only covers a wide range of trending topics, he also creates reviews, PR articles and educational content. His work has also been referenced by other news outlets.
Source: https://coindoo.com/bitcoin-dropped-under-110000-what-could-be-the-reason/