How Trump's Tariffs Are Shaking Up Bitcoin Price in EURO & Crypto Markets

EUR/USD Nears New Highs as EU Strikes Back at Trumps Tariffs

The financial world is on edge as Trumps latest tariff war against the EUintensifies. Following his announcement of universal tariffs, EU Commission President Ursula von der Leyenretaliated with strong countermeasures, calling the move a major blow to the world economy.

In response, the EUR/USD pair has surged to 1.1046, marking a 4% increase over the past month. With tensions escalating, investors are scrambling to understand the implications for cryptoand how European crypto companieswill navigate this crisis.

EUR/USD 1-day chart - TradingView

Heres how the tariff war is impacting the digital asset space.

1. The Trade War Is Weakening the EUs Economic Stability

With tariffs disrupting trade, the European economy faces a new wave of uncertainty. This could slow down investment and increase costs for businesses, including those in the crypto industry.

Historically, economic slowdowns have reduced liquidity in crypto markets, as investors opt for safe-haven assetslike gold and stablecoins. However, with USDCs value declining against the euro, European firms relying on stablecoin transactionsare in trouble.

2. Crypto Companies in the EU Face Rising Costs

Many European crypto companies rely on USDCfor transactions, payments, and DeFi operations. But with the euro gaining strengthagainst the dollar, stablecoin-based transactions are becoming less valuablefor EU-based firms.

If the EUR/USD continues its upward trajectory, crypto companies may need to rethink their reliance on dollar-pegged stablecoinsand explore alternative solutions, such as euro-backed stablecoins or direct fiat payments.

3. Investors Are Looking to Crypto as a Hedge

Despite the risks, some traders see crypto as a potential hedge against currency fluctuations. Bitcoin and Ethereum often react to global macroeconomic instability, meaning that as the trade war intensifies, digital assets could see increased volatilityand opportunities for short-term gains. Bitcoin price in EURO saw a bigger decline in prices, especially in the past month as Bitcoin price in EURO crashed by more than 8%.

BTC/EUR 1-day chart - TradingView

Additionally, if the European Central Bank (ECB) shifts towards a more aggressive monetary policy to counteract US tariffs, we could see more capital flowing into decentralized assetsas a safe haven.

A Defining Moment for Crypto in Europe

Trumps tariffs are causing ripple effects far beyond traditional finance, with the EUR/USD rallyraising serious concerns for European crypto firms. With stablecoin payments losing value, transaction costs rising, and investors seeking hedges, the next few months will be crucial for the digital asset industry.

Will crypto find a new role in this trade war？ Or will European firms struggle under the pressure？The coming weeks will provide the answer.