Bitcoin Drops 2.4% to $120,000 After Trump's Russia Ultimatum

Bitcoin's recent price surge, which had been impressive over the past several days, experienced a sudden halt after US President Donald Trump issued a stern warning to Russia. Trump threatened to impose "very severe tariffs" if Russia does not reach a peace deal with Ukraine within 50 days. This ultimatum has had a significant impact on the cryptocurrency market, particularly Bitcoin, which dipped below $120,000 after reaching a new all-time high above $123,000 earlier in the day.

The President's threat includes plans to sell US weapons to European countries, which would then be transferred to Ukraine. This move is part of a tougher stance against Russia and its allies, as Trump aims to pressure Russia into negotiating a peace deal. The secondary tariffs, which Trump referred to, would amount to a 100% taxation against Russia and further sanctions on countries that purchase oil from Russia.

Trump's tariff threats have historically had a negative impact on the cryptocurrency market. In April, for instance, Bitcoin plummeted below $75,000, marking a five-month low. However, the market has shown resilience in recent weeks, remaining relatively stable despite Trump's previous threats of sanctions against the EU and Mexico.

The latest threat, however, has had a more pronounced effect on Bitcoin's price. The primary digital asset dropped below $120,000, indicating that the market is sensitive to geopolitical tensions and potential economic sanctions. The impact of Trump's ultimatum on the broader cryptocurrency market remains to be seen, but it is clear that Bitcoin's price is closely tied to global political developments.

The relationship between Trump and Ukraine's President Zelenskyy has been strained since Trump reentered the White House in January 2025. Despite promising to end the war in Eastern Europe immediately after becoming president, Trump's actions have often been seen as contradictory and unpredictable. His latest ultimatum to Russia, however, signals a more aggressive approach to resolving the conflict.

The cryptocurrency market's reaction to Trump's ultimatum highlights the interconnectedness of global politics and financial markets. As geopolitical tensions continue to rise, investors are likely to remain cautious, and the price of Bitcoin and other digital assets may continue to fluctuate in response to political developments. The market's resilience in the face of previous threats, however, suggests that investors are increasingly viewing cryptocurrencies as a long-term investment, rather than a short-term speculative asset.