The cryptocurrency marketplace is experiencing significant strain. Plummeting beneath the $100,000 mark, Bitcoin has been subjected to intense pressure due to economic instability instigated by US President Donald Trump’s latest series of tariffs. Investors are now feeling anxious, closely watching global markets react to the escalating trade disputes.
Tariffs Ignite Market Distress
Financial markets have been shaken by Trump’s decision to impose a 25% tariff on imports from Canada and Mexico, alongside a 10% tariff on goods from China. Countries affected have swiftly retaliated, raising concerns about a potential comprehensive trade war. Besides a surge in crude oil prices, the equities market’s reaction has been harsh, resulting in a noticeable decline in US stock futures.
Bitcoin Falls To $93k Level
Even Bitcoin, often viewed as a safeguard against traditional market fluctuations, was affected. The leading cryptocurrency dropped to its lowest level in three weeks, nearing $93,500. As investors retracted due to the escalating uncertainty, other major digital currencies, such as Ethereum, also experienced sharp downturns.
Cryptocurrency Sell-Off Gathers Momentum
The decline in Bitcoin’s value has intensified as economic uncertainty grows. Long-term investors are reducing their investments, as suggested by Glassnode data, indicating a shift in market sentiment. The atmosphere is increasingly cautious and anxious as experts caution that further declines may be forthcoming.
BTCUSD is trading at $93,900 on the daily chart: TradingView.com
Bitcoin traders are closely watching the $90,000 support level, with worries that a significant drop below this could drive prices down toward $80,000. Currently, Bitcoin is down roughly 15% from its record peak of $109,350 on January 20. However, seasoned traders consider such pullbacks as typical in bullish markets, where downturns of about 30% are common.
Nonetheless, the downturn isn’t alarming everyone. Robert Kiyosaki, a notable investor and financial author, perceives it as an opportunity to buy:
TRUMP TARRIFS BEGIN: Gold, silver, Bitcoin may crash. GOOD. Will buy more after prices crash. Real problem is DEBT….which will only get worse. CRASHES mean assets are on sale. Time to get richer.
— Robert Kiyosaki (@theRealKiyosaki) January 31, 2025
The World Braces For Additional Volatility
The entire financial environment is feeling the pressure. The latest round of tariffs has exacerbated strain on supply chains, triggering fears of rising inflation and an economic slowdown. With the Federal Reserve’s cautious approach to monetary policy, investors face the risk of significant volatility in the coming weeks.
Canada and Mexico have already initiated counteractions to Trump’s tariffs, while China has suggested potential economic repercussions. Market analysts anticipate that if tensions continue to rise, risk assets, including Bitcoin, might experience additional falls before achieving stabilization.
Featured image from Gemini Imagen, chart from TradingView
1 Trackback / Pingback