Bitcoin Dips to $109,000 as Trump’s Tariff Threats and Profit-Taking Weigh

Bitcoin Retreats from Peak

Bitcoin (BTC) declined to $109,110 on Friday, May 23, 2025, reflecting a 1.6% drop from its record high of $111,953.6 achieved on Thursday. The retreat was driven by profit-taking after a strong rally, coupled with significant overnight transfers, including over $670 million received by Coinbase Global. Despite the pullback, Bitcoin remains poised for an 8% weekly gain and an 18% monthly increase, bolstered by optimism over U.S. regulatory progress and consistent inflows into spot Bitcoin exchange-traded funds (ETFs).

Trump’s Tariff Proposals Dent Crypto Market

The cryptocurrency market faced downward pressure following U.S. President Donald Trump’s announcement of potential 50% tariffs on European Union imports and 25% tariffs on iPhones manufactured outside the U.S. The statement, made via social media, heightened economic uncertainty, prompting a shift toward safe-haven assets like bonds and gold. S&P 500 futures fell 1.3%, while major cryptocurrencies, including Ethereum (ETH) at $2,572.45 (-2.8%), XRP at $2.36 (-2.4%), and Dogecoin (-3.5%), mirrored Bitcoin’s decline. Solana, however, saw a modest 0.5% rise.

Regulatory Advances Support Crypto Outlook

Bitcoin’s resilience is supported by growing U.S. regulatory clarity. The Senate advanced the “Guiding and Establishing National Innovation for U.S. Stablecoins” (GENIUS) Act, a key move toward regulating stablecoins that could foster greater institutional involvement. U.S. spot Bitcoin ETFs recorded $934.7 million in net inflows on Thursday, with BlackRock’s IBIT contributing $877.6 million, and total trading volume reaching $5.39 billion. Reports also indicate that major U.S. banks, including JPMorgan Chase, Bank of America, Citigroup, and Wells Fargo, are exploring a joint stablecoin to enable faster, cost-efficient transactions.

Tokenized Stocks Introduced and Market Trends

Tokenized versions of U.S. stocks, known as xStocks, were launched to allow non-U.S. investors to trade digital tokens reflecting shares of companies like Apple, Tesla, and Nvidia with round-the-clock access. The service, rolled out in select international markets excluding the U.S., marks a step toward broader crypto adoption. Sustained demand is further driven by MicroStrategy’s ongoing Bitcoin acquisitions and U.S. fiscal concerns, though analysts note support at $106,000 and potential for Bitcoin to climb to $120,000 if the uptrend holds, with $95,000 as a critical level to watch for any trend reversal.