Trump Returns to Tariffs, Bitcoin Corrects

Fear grips the market as President Trump reignites the trade war, triggering a significant correction and the first outflow of capital from Bitcoin ETFs in a week.

The price of Bitcoin fell significantly on Friday, losing 3.92% to close at $107,318. The world's leading cryptocurrency reacted downward amid the nervousness generated by new threats from former US President Donald Trump. His recent statements, which include the possibility of imposing a round of 50% tariffs on European Union products starting June 1, as well as a 25% tax on imported iPhones purchased by US consumers, have further escalated the trade war.

The Bitcoin price fell but managed to hold above the new fixed support at $107.000. / TradingView

Trump Unleashes Fear: Bitcoin Reacts as a Risk Asset

Trump's rhetoric has sown fear in some risk markets, and Bitcoin, often viewed as a risk asset, experienced a significant correction after a sustained rally since early April that led it to reach all-time highs. The price of Bitcoin fell but managed to hold above the new fixed support at $107,000. This cryptocurrency's pullback occurred with trading volume exceeding the 25-day average, indicating a strong influx of bears into the market to take profits.

Bitcoin ETFs: First Negative Inflow in Seven Days

In a notable development, the Bitcoin ETF market recorded negative capital inflows for the first time in the past seven days, to the tune of $219.10 million. After more than a week of sustained inflows, the flow of money from the institutional sector declined sharply, reflecting the caution of large investors in the face of global uncertainty.

Futures Open Interest Retreats: The Uptrend Remains Intact

In the futures market, Bitcoin's open interest closed at $76.83 billion, declining 3.90% over the past 24 hours. Despite this decline, the Bitcoin price remains in a solid uptrend, trading above the 50- and 200-period moving averages. This indicates that the cryptocurrency remains in a clear upward trend that, despite the daily correction, remains intact. So far, the bulls maintain control of the market, and the price remains above $107,000.