XRP News Today: Bitcoin Drops 2.7% After Trump's 50% EU Tariff Announcement

Bitcoin's price dropped below $109,000 following President Trump's announcement of new tariffs targeting the European Union and Apple. This move sparked a sell-off in the cryptocurrency market, with Bitcoin leading the decline. The tariff threat, which includes a proposed 50% tariff on EU goods, has added to the global economic uncertainty, causing a ripple effect across various financial markets.

The impact of Trump's tariff announcement was immediate, with Bitcoin falling more than 2.7% on the day of the announcement. This decline was part of a broader market reaction that saw other cryptocurrencies, including DOGE and XRP, also experience significant slumps. The renewed trade tensions have raised concerns among investors about the potential economic fallout, leading to a cautious approach in the market.

Bitcoin quickly reversed after Trump proposed a 50% tariff on imports from the European Union starting next month. Over the past 24 hours, Bitcoin nosedived to hit $108,319 lows before rebounding slightly to $108,438. Trump also threatened Apple, the $3 trillion iPhone maker, stating that iPhones sold in America must be built domestically or face a 25% tariff. The ultimatum to Apple CEO Tim Cook appeared aimed at the tech giant’s extensive overseas manufacturing footprint.

Bitcoin’s pullback came less than 24 hours after it smashed a new all-time high of $111,980, exceeding the previous record of nearly $109K. The Bitcoin price had been on a tear following its increasing correlation with gold, a traditional safe-haven asset, and growing concerns about Japan’s and the US’s fiscal health. Moreover, increased corporate and institutional allocation, including frequent BTC buys by publicly traded companies, alongside positive inflows into US-listed spot Bitcoin ETFs, further strengthens Bitcoin’s market position.

Ether (ETH) and other major altcoins were sliding, too. ETH has lost 2.9% of its value and is currently trading for just above $2,562. XRP has fallen 2.5% over the last 24 hours and is currently trading for $2.37. Meanwhile, the leading meme coin Dogecoin (DOGE) was down 2.1% during the same period, changing hands at $0.2360.

Analysts have downplayed the immediate impact of the tariff threat on Bitcoin, suggesting that the cryptocurrency's price movements are more influenced by broader market sentiment and investor behavior. However, the persistent uncertainty surrounding trade policies continues to be a significant factor affecting the market. The recent all-time high of $112,000 for Bitcoin was quickly overshadowed by the tariff announcement, highlighting the volatility and sensitivity of the cryptocurrency market to geopolitical events.

The slump in DOGE and XRP prices further underscores the market's reaction to the tariff threat. While XRP showed renewed bullish momentum before the announcement, the tariff news has led to a reversal in its price trend. The overall market sentiment remains cautious, with investors closely monitoring the developments in trade policy and their potential impact on the cryptocurrency market.

The tariff announcement has also raised questions about the future of trade relations between the U.S. and the EU, as well as the potential impact on global supply chains. The uncertainty surrounding these issues has contributed to the market's volatility, with investors seeking safe-haven assets and reducing their exposure to riskier investments.

In summary, the recent slump in Bitcoin, DOGE, and XRP prices can be attributed to President Trump's new tariffs on the EU and Apple. The tariff threat has added to the global economic uncertainty, leading to a sell-off in the cryptocurrency market. While analysts downplay the immediate impact of the tariff threat, the persistent uncertainty surrounding trade policies continues to be a significant factor affecting the market. Investors are advised to remain cautious and closely monitor the developments in trade policy and their potential impact on the cryptocurrency market.