Bitcoin Drops Amid US-EU Tariff Reinstatement, Markets React

Bitcoin recently reached a new all-time high near $112,000 but has since retreated below $106,000 amid renewed uncertainty over U.S. trade policies, particularly the reinstatement of tariffs on the European Union. The reversal of a lower court ruling that had blocked these tariffs has heightened concerns about a prolonged trade war, contributing to volatility across global and cryptocurrency markets. Despite the pullback, Bitcoin has maintained strong investor interest, holding above $100,000 for over 20 days and attracting significant inflows into Bitcoin ETFs. Institutional interest remains robust, with major financial institutions like BlackRock and Santander showing increased engagement with crypto assets. Market participants are closely watching upcoming U.S. economic data, such as core PCE inflation, which could influence Federal Reserve policy and further impact risk assets. Overall, while Bitcoin faces short-term headwinds from geopolitical and economic uncertainties, its underlying demand and adoption trends continue to support its long-term prospects.