Bitcoin Price Falls Back From Highs. Trump Tariff Threats Are Hurting Cryptos. — Barrons.com

By Elsa OhlenBitcoin and other cryptocurrencies turned sharply lower Friday after President Donald Trump threatened tariffs on both the European Union and iPhone-maker Apple.It follows a two-day stint during which the world's largest crypto hit a record. That rally came to an abrupt end Friday morning.Bitcoin price is down 2.5% over the past 24 hours at $108,745 early Friday. Smaller cryptos Ether, XRP and Solana fell between 3% and 4%.In a post on Truth Social, Trump said Apple would have to pay a 25% tariff on iPhones made outside the U.S. and that a "very difficult to deal with" EU may face a 50% tariff from June 1. The statement rattled stock markets and cryptos alike.Futures on the S&P 500 traded 1.3% lower after trading flat for most of the early premarket action. The major cryptos had traded higher before Trump's social media post.Cryptos and other risk assets typically suffer during times of increased economic uncertainty as investors turn to safe-haven assets such as low-risk bonds or gold.Part of why cryptos have rallied over the past week is a result of optimism about an improving regulatory landscape for cryptocurrencies. Earlier this week, the Senate voted in favor of a stablecoin bill — the GENIUS Act — that aims to regulate digital coins pegged to a fiat currency, typically the U.S. dollar.Late Thursday, The Wall Street Journal reported that big U.S. banks, including JPMorgan Chase and Citigroup, are exploring their own joint stablecoin to compete with the crypto industry, as stablecoins can be used for faster and cheaper transactions. JPMorgan and Citi declined to comment.Crypto analysts often point to institutional demand and ETF inflow as key factors behind the coins' strength. A more favorable regulatory environment, of which the stablecoin bill could be the first step, would likely make it easier for institutional investors to trade cryptocurrencies and other crypto-products like ETFs and futures.FxPro analyst Alex Kuptsikevich attributed the rise to a combination of the stablecoin legislation advancements, capital inflows into U.S. ETFs, purchases by MicroStrategy — the world's largest corporate holder of the digital coin — and U.S. fiscal concerns."Unlike previous BTCUSD [Bitcoin] rallies, the current upward movement is not solely driven by momentum, but by increased demand and White House loyalty," Kuptsikevich said early Friday, before Trump's statement on hiked tariffs.Write to Elsa Ohlen at [email protected] content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.