What is the reason for the sudden plummet in Bitcoin? Will the Trump effect continue in the market?

US President Donald Trump continues to influence the cryptocurrency market with his statements. Recently, Trump made a statement regarding customs duties towards the EU, which led to a drop in Bitcoin (BTC) and altcoins.

Trump's Truth Social account proposing a 50% customs duty on the European Union caused BTC to get dumped by over 3% in a short time.

Trump stated that the primary goal of the EU is to take advantage of the US in trade, accusing the EU of using VAT, penalties, and currency manipulation to harm American companies.

Trump, who stated that the negotiations have stalled, proposed a 50% customs duty on all EU imports starting from June 1, 2025.

However, it also added that goods produced in the US will be exempt from taxes.

"It was very difficult to deal with the European Union, whose primary goal is to leverage the United States' advantage in TRADE."

....Our negotiations with them are going nowhere! Therefore, I propose to impose a 50% Customs Duty directly on the European Union from 1 June 2025. If the product is manufactured or built in the U.S., there is no Customs Duty."

US President Trump also challenged Apple CEO Tim Cook on tax issues. He shared that he clearly told the Apple CEO that all iPhones sold in the US should be produced in the US, not in India or other regions.

If production is not done as required, Apple will have to pay at least 25% customs duty for each iPhone.

Yesterday, Bitcoin, which set a record by rising above 111 thousand dollars and reaching a new ATH, fell to 107 thousand 400 dollars following Trump’s statements.

Afterwards, a certain amount of BTC recovered and rose to the level of 108,800 dollars.

Trump had previously caused sudden and sharp get dumped in Bitcoin with his announcements of tariffs on various countries like China.

News coming from both the US-China and US-Russia fronts will be crucial for Bitcoin and the market's short-term direction. Experts remind that during these periods, one should stay away from risky and leveraged trades.