Bitcoin Plummets 3.3% to $117,000 After Trump's 100% Tariff Threat

Bitcoin experienced a significant drop after the U.S. President issued a warning about imposing 100% secondary tariffs on countries that continue trading with Russia. This announcement, part of what is being called the Trump Tariffs Russia plan, has had a substantial impact on global markets, particularly in the crypto industry. Bitcoin had recently reached a record high of $121,000, but following the president's statement, it quickly fell to $117,000. This sudden decline was unexpected, as Bitcoin had been on a steady upward trajectory in the preceding days.

The president's warning came during a meeting with NATO Secretary General Mark Rutte at the White House. He gave Russian President Vladimir Putin a 50-day ultimatum to reach a ceasefire deal with Ukraine. If no progress is made within this period, the U.S. will enforce what the president described as "very severe" penalties on global partners conducting business with the Kremlin. These tariffs would effectively tax countries attempting to sell goods in the U.S. after continuing trade with Moscow. Additionally, the president confirmed that a new package of advanced weapons would be delivered to Ukraine, coordinated through NATO and funded by its members.

Bitcoin's recent surge to an all-time high of $121,000 was driven by market momentum and positive investor sentiment. However, the president's remarks about Russia and the 100% tariff threat led to a sharp shift in sentiment, causing Bitcoin to plummet to $117,000 within hours. This decline represents one of the steepest intraday drops since the beginning of the year. Analysts attribute this slide to fears that the Trump Tariffs Russia policy may create wider international instability, making risky assets like crypto less attractive in the near term.

The announcement had an immediate impact on crypto prices. Bitcoin's drop was its most significant daily decline in weeks, and other top altcoins such as Ethereum and Solana also decreased in value following Bitcoin's fall. Analysts suggest that the uncertainty surrounding the Trump Tariffs Russia policy may encourage investors to seek safer assets. "Markets dislike uncertainty, and this threat alters the entire global trade dynamic," one crypto strategist noted. Earlier, crypto investors were optimistic due to Bitcoin ETF expansion and institutional buying, but this optimism has now been overshadowed by concerns about a potential trade war.

Some analysts are skeptical about whether Trump’s 50-day deadline will influence the Kremlin’s stance. Frank Gardner, a senior security correspondent, pointed out that such ultimatums have failed in the past. “Putin doesn’t respond well to pressure,” he said. Meanwhile, Anthony Zurcher, a U.S. political analyst, described this as a significant shift in the president's approach to the war. “This is him drawing a clear red line,” he said. “But will the Trump Tariffs Russia strategy work? That’s still unclear.”

In Kyiv, Ukrainian President Volodymyr Zelensky expressed optimism about the new weapons support coming from NATO. He mentioned that his meeting with U.S. envoy Keith Kellogg went well. In Moscow, Kremlin spokesperson Dmitry Peskov emphasized the importance of continuing diplomatic talks, but there was no indication that Moscow would back down in response to the Trump Tariffs Russia threat.

The crypto industry now faces a new challenge. With Bitcoin below $120,000 and global tensions rising, the Trump Tariffs Russia policy could influence market trends in the coming weeks. It is more important than ever for crypto investors to approach their investments with caution.