Bitcoin Tumbles 5% After Hitting $112K Peak as Trump Sparks Fresh Trade War Chaos

Just as Bitcoin notched a record $112K high, it got sucker-punched by a 5% drop—thanks to Trump reigniting trade tensions with the EU and Apple’s latest market jitters.

Trade war déjà vu? Markets hate uncertainty, and crypto’s no exception. When geopolitical sparks fly, even digital gold catches a cold.

Meanwhile, Wall Street shrugs and buys the dip—because nothing says ’risk management’ like treating volatility as a discount coupon.

• Bitcoin retraced over 5% after Trump’s tariff threats dampened the rally post-$112K ATH.
• A bullish “Golden Cross” on Bitcoin’s weekly chart signals historical potential for a 60% surge.
• Market uncertainty rises as U.S. trade tensions with the EU and Apple’s offshore production face fresh scrutiny.

Bitcoin’s newly set all-time high of $112,000 was quickly overshadowed as U.S. President Donald TRUMP reignited trade tensions with a double-barreled tariff threat.

According to Santiment, with Memorial Day weekend nearing, Trump imposed a blanket 50% tax on all EU imports and a 25% duty specifically targeted towards Apple if the tech giant persists with manufacturing iPhones outside the U.S. The drastic moves slated to commence on June 1st if negotiations with the European Union do not get any better shook the markets.

The announcement could not have come at a worse time for Bitcoin bulls. Just 24 hours after touching the new ATH, BTC fell over 5%, dropping to about $107,600. The wider equity market also mirrored the dip, with the S&P 500 responding negatively as traders prepared for increased world trade tensions.

Trump’s action is barely two weeks after relief signals flashed from the U.S.-China trade scene, reigniting market jitters common in the early April FUD period.

He justified this action by pointing out what he sees as the unequal trade deficit with the EU and decrying Apple’s relocation to India. The administration’s turn towards acrimonious tariffing policies upended crypto and mainstream markets alike and rekindled fears over economic policy unpredictability emanating from the U.S.

Technical Chart Flags Bitcoin Bullish Reversal

In the midst of the macro turmoil, a big technical signal attracted traders’ notice. One chart presented by “Titan of Crypto”, a widely-read crypto market commentator, pointed out a key bullish sign: the Golden Cross.

This is when the 50-day moving average crosses over the 200-day average, a setup that before used to precede a 60% BTC rally. The chart includes the Ichimoku Cloud, a multifaceted indicator created by Goichi Hosoda.

This confirms the bullish turn as the cloud changes from red to green with the crossover point. Having the price action MOVE above the green cloud and volume spikes with the move signals strong momentum to continue moving higher.

Strategy Shift as Market Juggles Signals

While the chart technically is seeing the glass as half-full, traders are divided. The reappearance of trade tensions at lightning speed has prompted traders to switch strategy from active speculation to holding in a cautious manner. Most are waiting for macro clarity before taking further action, weighing the chart signals against the impending economic dangers emanating from geopolitical tensions.

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