President Donald Trump’s announcement Friday of sweeping new tariffs sent global markets tumbling, but cryptocurrency Bitcoin showed resilience despite initial losses, buoyed by massive exchange-traded fund inflows and bullish trading data.
Trump threatened a 50% tariff on European Union imports and a 25% levy on Apple iPhones manufactured outside the United States, reigniting trade tensions and prompting sharp declines in risk assets. The announcements, made via social media, reflected White House frustration that negotiations with the EU were not progressing quickly enough, according to Reuters.
Major U.S. stock indexes and European shares fell following the threats, while the dollar weakened. Gold prices rose as investors sought safe-haven assets, and U.S. Treasury yields dropped amid concerns about the tariffs’ economic impact.
Bitcoin, which reached a record high above $111,000 earlier this week, fell below $109,000 after the tariff announcements. U.S. index futures dropped nearly 2%, and Apple shares declined 3.6%.
Despite the volatility, Bitcoin’s long-term prospects remain strong. BlackRock’s iShares Bitcoin Trust attracted $877 million in inflows Thursday alone, bringing its total net inflow to $47.6 billion, according to sosovalue. Options market data showed continued bullish sentiment, with traders positioning for potential breakouts at $300,000 and $200,000 price levels.
The market turbulence coincided with heightened attention on Trump’s engagement with the cryptocurrency industry. Justin Sun, founder of the Tron blockchain, attended a VIP dinner for top holders of the $TRUMP meme coin at the president’s private country club.
Sun, who holds $18.6 million in $TRUMP tokens and $75 million in Trump’s World Liberty Financial platform, defended the event against criticism in an interview with CoinDesk. He called Trump’s embrace of cryptocurrency “one of the best decisions” for American crypto innovation.
A Bloomberg analysis found that at least 19 of the top 25 Trump meme coin holders are likely foreign investors. The Trump family and affiliates control 80% of the $TRUMP coin supply and have earned more than $320 million in fees, including $1.35 million following the dinner announcement, according to blockchain analytics firm Chainalysis.
White House spokeswoman Karoline Leavitt defended the president’s cryptocurrency activities, stating his assets are managed by a blind trust.
Bitcoin maintains its position as the world’s fifth-largest asset by market capitalization at $2.1 trillion, trailing Apple, Microsoft and NVIDIA, all valued above $3 trillion. The cryptocurrency is positioned to challenge gold’s estimated $22 trillion market value.
The interplay between geopolitical tensions and cryptocurrency markets underscores the complex dynamics shaping global finance as investors navigate an increasingly volatile landscape.
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