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Bitcoin was sitting pretty—on the brink of fresh all-time highs. Altcoins were green and breaking out. But it seemed like everyone had forgotten the major catalyst of 2025: Donald Trump.
Last night, Trump took to Truth Social, declaring he would recommend a 50% tariff on the European Union starting June 1, alongside a 25% tariff on all iPhones not made in the US. Markets reeled. Yields fell sharply as recession fears resurfaced, dropping 2% back under 4.5%. Recession odds spiked 7 percentage points, climbing back to 43%. Ironically, the drop in yields could only embolden Trump to intensify the trade war.
In the aftermath, US Treasury Secretary Bessent stated that additional trade deals would be announced during the 90-day tariff delay period. This reversed the earlier yield drop, with the 10Y Note Yield climbing back to 4.50%—effectively undoing the intended downward pressure from Trump’s initial statement. But risk-on assets didn’t bounce. Instead, they suffered.
This has absolutely rattled markets, with risk-on assets bearing the brunt — particularly in crypto. Bitcoin dropped nearly 4%, while altcoins took a much heavier hit. Ethereum and Ripple fell around 5%, with many others down 8–10% or more. It was a drastic blow to altcoins. While a pullback in Bitcoin was overdue and arguably healthy, the catalyst—tariffs and trade war drama—makes it more concerning than constructive.
In the short term, momentum is with the bears, but structurally, the bulls remain in control. This dip should be viewed as an accumulation opportunity, particularly before the tariff noise fades (as it always has), and Bitcoin’s true price action resumes.
Sentiment Update: The Fear & Greed Index has fallen 12 points, retreating from yesterday’s 78 to 66, pulling it back out of extreme greed territory.
Stormrake Spotlight: Bittensor (TAO) ($422)
Stormrake Spotlight: Bittensor (TAO) ($422)
Like most altcoins, TAO was hit hard, tumbling almost 10% yesterday in the wake of Trump’s tariff headlines. It’s now testing the 21 EMA, attempting to establish it as support. With macro conditions driving momentum, TAO will follow Bitcoin’s lead—whether that’s further down or a bounce back up.
BTC/USD Key Levels and Price Action:
BTC/USD Key Levels and Price Action:
Bitcoin’s recent pullback from all-time highs was swift and sharp, triggered directly by the new tariff announcements. The momentum has temporarily flipped bearish, but BTC is now testing the 200 moving averages—a critical level that must hold to keep the longer-term bullish structure intact. A prolonged correction could place that structure at risk.
BTC Total ETF Flows for 23 May: $ - 219.1 million
(ETF flow data is sourced from https://farside.co.uk/btc/ and reflects figures at the time of writing.)
*All prices are denominated in USD unless stated otherwise*
Written by Alexandar Artis
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