Bitcoin Smashes $120K Record After Trump Tariff Shock on EU and Mexico

In a dramatic turn for global markets, Bitcoin surged past $120,000 for the first time in history, fueled by rising geopolitical tensions and a fresh wave of protectionist policies from the United States.

The spike followed former President Donald Trump’s announcement that the U.S. will impose a 30% tariff on imports from the European Union and Mexico starting August 1. The announcement sent shockwaves through traditional markets—particularly in manufacturing and automotive stocks—triggering a flight to digital safe havens.

Bitcoin Breaks All-Time High: $120,893

After fluctuating around the $100,000 mark in recent weeks, Bitcoin jumped 1.5% intraday, reaching $120,893 on major exchanges. This marks a year-to-date gain of over 29%, underpinned by global trade uncertainty and investor appetite for non-sovereign assets.

Analysts say the move reinforces Bitcoin’s status as “digital gold”, particularly during episodes of macroeconomic volatility.

Trump’s Tariff Policy Spurs Crypto Rally

The crypto market rallied sharply after Trump’s tariff policy announcement, which targeted key imports from the EU and Mexico. Fears of a trade war triggered sharp sell-offs in global equities, while Ethereum, Solana, and Avalanche joined Bitcoin in climbing higher.

But it was Bitcoin that led the surge, benefiting from its established role as a hedge against traditional market disruptions.

Uncertainty Looms Over Trump’s Crypto Policy

Trump’s stance on cryptocurrency in a potential second term remains ambiguous. While early signals hinted at pro-crypto policies, recent moves—like aggressive trade barriers—have cast doubt on those expectations.

Experts suggest that Trump’s protectionist economic approach is pushing investors toward decentralized and limited-supply digital assets. Bitcoin, with its fixed issuance and censorship resistance, is seen as a strategic asset in uncertain times.

Market Outlook: “Digital Gold” Gains Ground

As macro pressures rise, Bitcoin’s narrative as a non-political store of value is being re-energized. With mounting fears of inflation, state intervention, and geopolitical fragmentation, institutional and retail investors alike are seeking crypto as a long-term hedge.