Why Did Crypto Collapse? It Could Be Due to $TRUMP

Bitcoin falls sharply after Trump calls for a 50% tax on the European Union. Here is the reaction of the global market. Why did Crypto collapse? Trump's tariff threat caused Bitcoin to fall. The cryptocurrency market has fallen sharply after President Donald Trump announced a plan to impose "a direct 50% tariff on the European Union" starting next month. This bold trade threat has sent shockwaves across global markets, particularly in risk assets like Bitcoin and altcoin.

The total market capitalization of cryptocurrencies has fallen by 3% in the last 24 hours, with Bitcoin and major altcoins recording red candles. But why has cryptocurrency collapsed so suddenly, and is this the beginning of a deeper correction? Bitcoin fall after Trump's EU tariff shock In a surprising turn of events, President Trump's announcement regarding stalled trade negotiations with the EU came with a bold proposal—a 50% tariff starting next month. The cryptocurrency community reacted immediately, viewing this move as a potential catalyst for macroeconomic instability and market volatility. Bitcoin ( BTC ), often referred to as digital gold during times of turmoil, has failed to act as a safe haven this time. This asset has fallen by 2.27% in the last 24 hours, currently trading at 108,247.81 dollars, although it is still up 4.71% over the past week. The Altcoin market follows Bitcoin's fall Altcoins also fell alongside Bitcoin, with Ethereum ( ETH ), XRP, Solana ( SOL ), and Cardano ( ADA ) all decreasing on the day: Ethereum ( ETH ): Fall 5.21%, currently trading at 2,550.32 dollars, although it has increased 2.75% this week. XRP: Fall 4.57% to 2.33 dollars, with some signs of recovery this week at +1.24%. Solana ( SOL ): Fall 3.57% to 175.19 dollars, with a gain of 4.44% over 7 days. Cardano ( ADA ): Fell further down with a 7.50% drop, trading at 0.7599 dollars and showing stable weekly performance at +0.22%. Even Dogecoin ( DOGE ), the cryptocurrency that recently surged in value along with memecoins, has fallen sharply after a strong increase earlier this week. Political tensions encounter the trend of inflating meme coins Adding fuel to the fire, President Trump also hosted a private dinner for top holders of his own memecoin, $TRUMP, causing some Democrats to raise eyebrows and question the ethics. This event, while symbolic, has caused confusion in already anxious markets, as investors question the merging of political influence and cryptocurrency promotion. Market outlook: Is this just a pullback? Despite the collapse, the cryptocurrency market remains in a broader bullish structure. Bitcoin is still trading above key support levels and institutional interest remains strong. However, short-term uncertainty due to geopolitical risks - particularly trade wars and regulatory speculation - may continue to put pressure on prices. The coming days will be very important. If Bitcoin can hold above the support level of $105K and Ethereum defends the level of $2.5K, traders may regain confidence. If not, we may see further decline before the market stabilizes.