Recent volatility in the cryptocurrency market has seen Bitcoin (BTC) drop below the $110,000 mark as concerns over a potential trade war with the European Union escalate. Ethereum (ETH), and XRP have followed similar downward trajectories, indicating a broader trend across various crypto assets. While short-term fluctuations are normal, analysts point to former President Donald Trump’s announcement of proposed tariffs on EU goods as a key factor driving this recent dip. His Friday post on Truth Social outlined stalled trade negotiations and accusations of unfair practices from the EU, prompting a call for tariffs to be enacted starting June 1st, 2025. This geopolitical development has sparked significant market reactions, leading to substantial drops in European indices including the DAX (Germany), CAC (France) and FTSE (UK). Investors are increasingly cautious due to concerns of wider economic instability and risk-off sentiment. The cryptocurrency sector remains highly sensitive to macroeconomic shifts and international tensions.