Will Trump’s Tariffs Boost Bitcoin: Down 5% Again
Bitcoin (BTC) has experienced a 5% decline this week, following the broader market’s unease due to Donald Trump’s tariff threats against Canada, Mexico, and China. As trade tensions escalate, the cryptocurrency dropped from $105,000 to $92,000 over the weekend, prompting investor reactions.
While Bitcoin demonstrated weakness, Ethereum (ETH), Dogecoin (DOGE), and Trump’s meme coin experienced even steeper declines. Trump’s token, which initially surged after its launch, has now plummeted 75% from its peak, currently trading at $19.
Crypto Markets React to Trade War Fears
Trump’s protectionist policies have caused a ripple effect in global markets. Over the weekend, he warned Americans to expect “some pain” from tariffs, further solidifying his strategy to strengthen the U.S. economy. He also hinted at import taxes on the EU and UK, intensifying investor anxiety.
While U.S. stock markets recovered from early losses after Mexico secured a one-month reprieve from tariffs, the crypto market remains volatile. Bitcoin’s price movements increasingly resemble those of tech stocks, reflecting its growing institutional adoption.
“Bitcoin is now a macro asset,” said Nic Carter of Castle Island Ventures. “It has gained institutional credibility but is also more exposed to liquidity risks and macroeconomic factors.”
Bitcoin’s Institutional Adoption: A Double-Edged Sword?
Bitcoin’s transition from a decentralized digital asset to an institutional-grade investment has contributed to its rise to an all-time high of $109,000. Hedge funds and corporate treasuries have significantly increased their exposure to BTC, strengthening its long-term fundamentals.
However, this adoption has also made Bitcoin more vulnerable to shifts in central bank policies, trade disputes, and regulatory changes. Similar to big tech stocks, BTC now reacts sharply to Federal Reserve rate decisions and geopolitical developments.
Meanwhile, Trump’s pro-crypto stance continues to support the industry. Once a skeptic, he now champions the U.S. as the “crypto capital of the world,” appointing pro-blockchain regulators to key positions. While short-term price fluctuations persist, this political shift reinforces Bitcoin’s long-term bullish outlook.
Bitcoin Price Faces Bearish Risks as Key Support Levels Hold
Bitcoin (BTC) is currently trading at $96,200, down 5% for the week, as market uncertainty weighs on investor sentiment. The 50-day EMA at $98,700 remains a crucial resistance level, limiting recovery attempts.
BTC’s price action is forming a symmetrical triangle, a pattern often indicating an imminent breakout, with a bearish tilt. Currently, BTC is holding near $96,200, just above the 0.236 Fibonacci level at $95,100. A break below this level could push BTC towards $93,400 and $91,700.
If Bitcoin fails to hold at $95,100, a deeper correction is likely. However, a breakout above $98,900 could invalidate the bearish outlook and trigger bullish momentum.
On the upside, resistance is found at $97,200, with stronger barriers at $98,900 and $100,600. With a trading volume of $47.7 billion, BTC’s next move remains a critical focus for investors.
Key Takeaways:
Bitcoin fell from $105,000 to $92,000 following Trump’s tariff threats but then rebounded above $100,000 after policy revisions.
Trump’s meme coin has experienced a 75% crash, while First Lady Melania Trump’s coin is down 90% from its peak.
Bitcoin’s institutional adoption has made it more vulnerable to macroeconomic risks, mirroring the behavior of tech stocks.
Trump’s pro-crypto stance and regulatory appointments continue to be bullish factors for the long-term outlook of digital assets.
With Bitcoin still hovering near all-time highs, the market is closely watching for further policy announcements, Federal Reserve decisions, and global trade developments that could determine its next major move.
Best Wallet Token ($BEST): A Smarter Way to Manage Crypto
Best Wallet Token ($BEST) is not just another presale; it serves as the core utility asset of Best Wallet, a next-generation digital asset manager available on Google Play and the App Store. Designed for both casual and professional traders, it provides a seamless way to store, manage, and invest in cryptocurrencies, offering innovative features like early-access token discovery.
What sets Best Wallet apart?
Its “Upcoming Tokens” feature, which allows users to discover and invest in promising crypto projects before they reach mainstream markets.
With Fireblocks’ MPC-CMP security and support for over 1,000 cryptocurrencies, Best Wallet ensures secure transactions and seamless portfolio management.
Why Investors Are Bullish on $BEST:
188% APY in staking rewards, making it one of the most rewarding crypto investments.
Over 144 million $BEST tokens staked, demonstrating strong investor confidence.
$9.3 million raised so far, with demand surging ahead of the next price increase.
Best Wallet’s latest update, version 2.4.5, now enables users to claim tokens directly within the app, eliminating the hassle of switching platforms. With Fireblocks’ MPC-CMP security framework and support for over 1,000 cryptocurrencies, Best Wallet ensures secure transactions and advanced portfolio management tools.
Currently priced at $0.0239, $BEST is on track for its next price increase, providing early investors with a significant advantage.
Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
