Amid political developments in the United States, the cryptocurrency market has dramatically shifted its behavior. After Bitcoin reached a new all-time high of $112,000 on May 22, 2025, the price began to correct.
According to experts, the reason was a statement by U.S. President Donald Trump announcing a 50% tariff on goods from the European Union. This alarmed traders, who still remember the consequences of previous trade wars. Two days later, the White House postponed the implementation of the tariffs to July 9.
Court Blocks Tariffs
On May 28, a U.S. federal court ruled that Trump’s actions exceeded his authority. The judge stated that the “relief tariffs” violated the Constitution by bypassing Congress. The White House appealed the decision, citing the president’s emergency powers, but the court ruling has already sparked new debates on the separation of powers. The tariffs affected over 60 countries, and businesses warned of rising costs.
Social Media Reacts Faster Than the Market
According to Santiment, every spike in mentions of “tariffs” and “trade wars” on social media was accompanied by sharp fluctuations in Bitcoin’s price. A similar reaction was recorded in early April when markets also dropped due to threats of new tariffs. In such cases, crowd emotions turn out to be one of the most reliable indicators: rising greed aligns with price peaks, while fear coincides with upward reversals.
At the peak on May 22, optimism hit its highest level. Users widely anticipated a rise to $115,000, but the price quickly declined. On May 25, when Bitcoin dropped to $106,000, panic peaked and the market began to reverse. This pattern repeats regularly.
According to analysts, the most popular options contract right now is a $300,000 bet on Bitcoin by June. This indicates continued optimism among some participants.
