Can Bitcoin Price Lose $110k Support As Trump Proposes 50% Tariff on EU?

Early trading on Friday saw Bitcoin price retreat, dropping below the $110,000 level. Stocks in the market fell after President Donald Trump suggested new tariffs. From June 1, 2025, all goods from the European Union will be subject to a 50% Tariff.

Gains in the crypto sector were quickly wiped out when investors started doubting the market. Bitcoin price had reached an all-time high of $111,980 only hours prior, driven by institutional demand and perceptions of digital assets as alternative stores of value.

Still, the trade measures slowed things down, reducing Bitcoin price to $107,300 at its lowest.

Tariff Proposal Sparks Bitcoin Price Volatility

Donald Trump’s announcement on Truth Social introduced new uncertainty to global markets. The former president cited prolonged trade disagreements with the EU as justification for the steep import duty.

He also threatened Apple with a separate 25% tariff on iPhones unless the company shifts production to the United States.

These statements came during early U.S. trading hours, catching investors off guard. U.S. stock futures fell immediately, while European indices recorded a 2% decline.

Cryptocurrency investors followed the same trend. Within 24 hours, the overall crypto market cap dropped by 2.8% to $3.46 trillion. Bitcoin price sensitivity to geopolitical and macroeconomic shifts became evident as traders repositioned in anticipation of broader instability.

Bitcoin Price Breaks Below Key Support Level

Bitcoin price briefly dropped below $110,000, raising concerns among market observers. In the past, $110,000 had acted as a barrier, formed when a lot of institutional inflows pushed BTC price up. The shift tells that the asset responds to changes in political and economic conditions.

At press time, Bitcoin price was worth $108,883.38, which was 1.83% lower than it was the day before. Other cryptocurrencies experienced drops during this time as well.

Ethereum, Solana, and other top altcoins all saw their prices decrease. The fall in asset prices indicates investors are getting cautious about Donald Trump’s new trade plan.

According to analyst Ali Martinez, the top altcoin had just broken out of a significant upward channel, suggesting that its price could fall further. He suggested that the current breakout in Bitcoin price could see it reach $109,000.

Responses from Important Players and Market Experts

Michael Saylor, co-founder of MicroStrategy, shared his thoughts about the update via the X social media platform. He tweeted to highlight how crypto is free from both trade barriers and government restrictions.

The MicroStrategy co-founder said,

“No Tariffs on Bitcoin.”

Chicago Federal Reserve President Austan Goolsbee worried about the economic outcomes of such a big rise in tariffs. He mentioned that applying a 50% tariff could cause more inflation with lower economic growth.

Such circumstances imply that a slower economy, along with higher prices, will cause problems for central banks.

Short-Term Outlook for Bitcoin Price

With Bitcoin price failing to maintain levels above $110,000, traders are closely monitoring upcoming economic announcements and geopolitical developments. The coming few trading days will reveal if the $110,000 level again becomes support.

The top cryptocurrency has recently become more valued than the Taiwan Dollar in the market, with a worth of $2.18 trillion. As a result of this success, Bitcoin is now among the leading currencies around the world, with its reputation as a valuable financial asset.

In another report, experts identified crypto stocks to focus on as Bitcoin reaches new levels, showing that more people are interested in investing. Strategy (MSTR) hopes to add $2.1 billion of Bitcoin to its reserves, and Coinbase (COIN) rose after being included in the S&P 500, indicating more approval from big investors.