Bitcoin Tumbles to $95K as Trump’s Tariff Threat Sparks Market Jitters

BTC slumps 5% in 24 hours after former President Trump hints at aggressive trade policies—because nothing says ’market stability’ like geopolitical brinkmanship.

Traders dump risk assets as tariff talk overshadows Bitcoin’s recent ATH—proving once again that crypto markets are the canary in the coal mine for macro stupidity.

Silver lining? The dip buyers are already circling. After all, what’s a 10% correction between future millionaires?

Trump’s Tariff Bombshell Shakes Things Up

Former President Trump’s latest economic curveball? A proposal to slap 100 percent tariffs on foreign-made movies. Yes, really. He says the goal is to protect and rebuild the U.S. film industry, but investors are reading between the lines. This isn’t just about Hollywood, it signals a broader return to the tough trade policies that defined his previous administration.

BITCOIN BREAKOUT IMMINENT?$BTC consolidating NEAR $95k.

Negative funding rates = Whale accumulation?

Trump’s tariff deals fueling market speculation.

Is $100k next? Or are we getting rekt?

— binarix (@binarychillguy) May 1, 2025

Markets didn’t love it. Entertainment stocks like Disney and Netflix took a hit, and crypto was quick to react too. Bitcoin dropped around 1.8 percent, slipping down to $94,000. Altcoins didn’t fare much better. XRP sank 2.7 percent and Solana dipped about 0.8 percent.

Crypto is known for its volatility, sure. But when uncertainty about global trade policies shows up, it tends to send Bitcoin and friends into defensive mode.

The Fed’s Rate Decision Looms Large

While Trump’s headlines stirred things up, another source of stress is the Federal Reserve’s upcoming interest rate decision. Most analysts expect the Fed to hold rates steady, but nothing is set in stone. Especially not when you throw new tariff plans into the mix.

Why does that matter? Well, tariffs can drive up the cost of imported goods, which pushes inflation higher. That puts the Fed in a tight spot. Do they hold steady or prep for another rate hike down the road? Investors hate not knowing, and the crypto market tends to react quickly when central banks start getting unpredictable.

$95K Bitcoin Drop: What This Means for Bitcoin Holders

Bitcoin has always been a bit of a wild card in times like these. It’s often seen as a hedge against inflation, but when the macro picture gets murky, even Bitcoin gets the jitters. The recent dip isn’t massive in crypto terms, but it’s a reminder that global policy moves still carry weight, even in decentralized markets.

We’ve seen this kind of pressure before, uncertain Fed policies, global trade drama, and sharp corrections across risk assets. This time is no different. Add in the fact that crypto’s 24/7 nature means it often reacts faster than stocks, and you’ve got a recipe for volatility.

Looking Forward

Bitcoin slipping below $95,000 might not sound like panic mode, but it shows just how jumpy the market is right now. Between Trump’s return to tariff talk and an anxious wait for the Fed’s decision, traders are playing it cautious. Whether crypto bounces back or sinks further may depend less on on-chain activity and more on what gets said behind podiums in Washington.

• Bitcoin dipped below $95K after Trump proposed new 100% tariffs on foreign-made films, sparking broader market uncertainty.
• Trump’s tariff threats signaled a potential return to aggressive trade policies, shaking confidence across crypto and traditional markets alike.
• The Federal Reserve’s upcoming interest rate decision added pressure, with investors unsure how inflationary policies might influence future hikes.
• Altcoins also declined amid the uncertainty, with XRP down 2.7% and Solana slipping 0.8% alongside Bitcoin’s 1.8% drop.
• The market’s reaction highlights how macroeconomic and political signals still strongly influence crypto’s short-term price movements.