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- Trump’s statements on EU trade and planned 50% tariffs sparked a sharp selloff in major cryptocurrencies, shaking investor confidence.
- Bitcoin fell below $108,500 from its recent peak of $112,000, while Ethereum dropped to $2,510 and XRP slipped to $2.31 amid rising geopolitical tensions.
- Ethereum and XRP are testing critical support levels; breaking these could lead to deeper declines, while overcoming resistance is key for recovery in a volatile market.
The global cryptocurrency market is once again caught in the crosshairs of international politics. Former U.S. President Donald Trump’s recent statements targeting the European Union have triggered a sharp selloff across major digital assets, sending prices tumbling and investor sentiment into a tailspin.
The crypto market entered Q2 2025 with high hopes following a positive first quarter for diplomacy. Bitcoin had surged to an all-time high of $112,000, bolstered by strong institutional inflows and renewed optimism after the U.S.-U.K. trade deal was formalized.
However, this bullish momentum has been interrupted after Trump took to Truth Social, declaring that trade negotiations with the European Union were “going nowhere.” The former president accused the EU of unfair practices, claiming it was designed to “exploit Americans” through trade barriers, excessive corporate penalties, and high VAT rates.
Trump further revealed plans to recommend a 50% tariff on EU imports, effective June 1, unless European manufacturers begin producing goods within the United States. The abrupt policy stance sparked immediate volatility in global markets, with the cryptocurrency sector feeling the brunt.
Bitcoin Sinks Below $108K as Ethereum and XRP Slide
Trump’s comments led to a swift correction across top crypto assets. Within minutes of his post, Bitcoin (BTC) dropped below $108,500, down from its recent highs. Ethereum (ETH) slipped to $2,510, failing to hold key support levels. XRP fell to $2.31, showing signs of further weakness.
This downturn has left traders wondering whether the rest of Q2 will mirror the steep losses seen in Q1 or if this is just a temporary retracement.
Despite the dip, Bitcoin remains technically bullish on a broader scale. Strong institutional support continues to act as a backstop, and fundamentals remain intact. However, short-term price action shows potential for further correction.
BTC is currently hovering around $108,716, near a heavy supply zone. If this resistance level holds, Bitcoin may retest the $100,000 support level. Technical indicators like the Relative Strength Index (RSI) are also flashing caution, with RSI retreating from overbought territory at 68.19, suggesting a cooling-off period may be imminent.
Ethereum has faced mounting resistance throughout 2025. After a steady decline in Q1, ETH built a high-volume profile at $2,710, which has since acted as a ceiling for upward movement.
As of mid-May, Ethereum has repeatedly attempted to reclaim this level, but weak buying pressure and macroeconomic uncertainty have stalled progress. If ETH breaks below its recent swing low of $2,330, analysts warn it could drop further to retest support around $2,100.
Investors are advised to wait for a confirmed breakout above $2,710 before considering long positions, as fear of missing out (FOMO) could lead to premature entries.
XRP Faces Volatility from Crypto Geopolitical Risks
XRP has mirrored the broader market sentiment, reacting sharply to Trump’s trade stance. It is currently trading near a crucial volume profile level established in Q4 2024. If this support holds, a recovery is possible. However, if XRP breaks below $2.06, it could trigger a deeper correction.
On the upside, if the coin manages to decisively move above its resistance zone, the next potential target could be $3.40, based on historical volume data and price action.
With Trump’s tariffs and rising geopolitical tensions shaking markets, renewed U.S.-EU trade friction adds to crypto’s uncertainty. As Q2 progresses, caution is key; investors should watch macro trends and key crypto levels closely.
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