Trump Tariffs Russia Threat Drags Bitcoin Below $120K After Rally

CN
13 hours ago

Trump Tariffs Russia: Bitcoin Falls on 100% Secondary Tariff Threat

Bitcoin has taken a sharp dip after the U.S. President issued a bold new warning on the Russia-Ukraine war. In a meeting at the White House with NATO Secretary General Mark Rutte, he warned to impose 100% secondary tariffs on all countries that continue trading with Russia.

The move, now being called the Trump Tariffs Russia plan, has caused a big reaction in global markets, especially in the world of crypto industry.

Bitcoin had just hit a record high of $121,000, but after the announcement, it quickly dropped to $117,000. This was surprising because Bitcoin had been rising fast over the past few days, and no one expected it to fall so suddenly.

Trump’s 50-Day Ultimatum to Putin

The president said he’s giving Russian President Vladimir Putin 50 days to reach a ceasefire deal with Ukraine. If no progress is made, the U.S. will enforce what he called "very severe" Trump Tariffs Russia penalties on global partners doing business with the Kremlin. These tariffs would essentially tax countries that try to sell goods in the U.S. after continuing trade with Moscow.

Alongside this threat, he confirmed that a new package of advanced weapons would be delivered to Ukraine, coordinated through NATO and funded by its members. “We are no longer waiting. This ends now,” the president said in his remarks.

Bitcoin Drops to $117K After Hitting Record High

Bitcoin recently surged to an all-time high of $121,000 on the back of market momentum and investor sentiment. Suddenly, after the president's recent words on Russia and his 100% tariff threat brought about a sharp change in the sentiment. Bitcoin plunged to $117,000 within hours, erasing some of its recent gains.

This decline represents one of the steepest intraday drops since the beginning of the year.

Analysts say that the slide was prompted by fear that the Trump Tariffs Russia policy may create wider international instability that renders risky assets such as crypto less attractive in the near term.

Crypto Investors React with Prudence

The announcement was instantaneous on crypto prices. Bitcoin's drop was its biggest daily decline in weeks. Ethereum, Solana, and other top altcoins also decreased in value, after the decline in Bitcoin.

Analysts indicate the uncertainty over the Trump Tariffs Russia policy might encourage investors to look for safer assets. "Markets dislike uncertainty, and this threat alters the entire global trade dynamic," one crypto strategist said.

Earlier, crypto investors were on a high tide of hope with Bitcoin ETF expansion and institutional buying. But now the hype has been overtaken by anxiety of another trade war surging in conjunction with this news.

Will Putin Blink? Experts Are Skeptical

Some analysts say Trump’s 50-day deadline is unlikely to change the Kremlin’s stance. Frank Gardner, a senior security correspondent, noted that such ultimatums have failed before. “Putin doesn’t respond well to pressure,” he said.

Meanwhile, Anthony Zurcher, a U.S. political analyst, called this a major shift in his 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.”

Ukraine Hopeful Amidst NATO Talks

In Kyiv, Ukrainian President Volodymyr Zelensky said he was glad to hear the news. He shared that his meeting with U.S. envoy Keith Kellogg went well and that he feels hopeful about the new weapons support coming from NATO.

Back in Moscow, Kremlin spokesperson Dmitry Peskov said it’s “very important” that diplomatic talks continue. Still, there is no signal that Moscow will step back in response to the Trump Tariffs Russia threat.

Conclusion

The crypto industry now faces a new test. With Bitcoin below $120,000 and global tensions rising, the Trump Tariffs Russia policy could shape market trends for the upcoming weeks. It is more crucial for crypto investors to stay cautious with their investments.

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