Bitcoin Hits Three-Week Low as Market Reacts to Trump Tariffs
Bitcoin fell to a three-week low of $91,441.89 due to risk concerns from U.S. tariffs imposed on Mexico, Canada, and China, leading to sell-offs in cryptocurrencies. Ether experienced its most significant dip since November 2022, losing nearly 25%. President Trump’s trade policies have created increased volatility in the markets, with some expecting future regulatory changes to favor cryptocurrencies.
Cryptocurrency markets experienced a downturn on Monday as Bitcoin fell to a three-week low amid escalating trade tensions following U.S. tariff impositions by President Trump. The largest cryptocurrency hit a low of $91,441.89 before recovering slightly to $95,730.35, representing a 6.2% decline for the day. In a broader market context, the cryptocurrency ether suffered nearly a 25% decrease since Friday, marking its largest loss in three days since November 2022.
The negative sentiment in financial markets stems from President Trump’s recent announcement of 25% tariffs on imports from Mexico and Canada, and 10% on goods from China, effective the following day. This prompted immediate responses from these trading partners, with Canada and Mexico promising retaliatory actions, while China indicated plans to challenge the tariffs at the World Trade Organization.
According to CoinGecko data, nearly 25% of the top 100 cryptocurrencies have witnessed declines of 20% or more within the past 24 hours. In pre-market trading, shares of the prominent U.S. cryptocurrency exchange Coinbase saw a decrease of 5.5%. Additionally, Trump’s own cryptocurrency, known as $TRUMP, fell below $20 after initially peaking above $73 shortly after its launch nearly two years ago.
The cryptocurrency market operates continuously, including over weekends, and has exhibited heightened sensitivity to broader market trends. Investors express concerns that tariffs may negatively impact economic growth and corporate profits, as well as contribute to inflationary pressures. Chris Weston, head of research at Pepperstone, noted, “Crypto is really the only way to express risk over the weekend, and on news like this crypto resorts to a risk proxy.”
Bitcoin’s decline has been less severe compared to ether, as some investors regard it as a safer asset akin to gold. Joseph Edwards, head of research at Enigma Securities, explained, “What we’ve been seeing isn’t so much that ether is being uniquely hard-hit… but rather that bitcoin is holding up uniquely well.” Furthermore, disappointment has mounted among investors regarding Trump’s lack of immediate crypto-friendly actions since his election, despite initial optimism at seeing regulatory changes for the cryptocurrency market.
Since reaching an all-time high of $107,071.86 on January 20, following Trump’s inauguration, Bitcoin has seen a 40% increase since the 2022 elections. Despite Trump’s earlier skepticism towards cryptocurrency, he had promoted a pro-digital asset stance during his campaign, pledging to establish the U.S. as the “crypto capital of the planet.” Shortly after taking office, he initiated efforts to explore cryptocurrency regulations and investigate a potential national cryptocurrency stockpile.
Paul Howard, senior director at crypto market-maker Wincent, remarked that while some of Trump’s actions may not meet the expectations of crypto enthusiasts, he remains optimistic about future growth driven by a more supportive governmental administration. He asserted, “The organic growth we anticipate… will likely outweigh the short term volatility and macro economic (tariff) news the next few weeks.”
The article discusses the impact of geopolitical tensions, specifically trade tariffs imposed by the U.S. government on cryptocurrency prices. Bitcoin, as the leading cryptocurrency, experienced significant fluctuations in value, influenced by investor sentiment regarding potential economic repercussions. The response from trading partners, including Mexico and Canada, indicates a broader concern about trade relations and economic stability, affecting the performance of not only cryptocurrencies but also financial markets as a whole.
In summary, the imposition of tariffs by President Trump has led to a significant decline in cryptocurrency prices, particularly Bitcoin and ether, amidst rising concerns of a trade war. The market’s heightened sensitivity to geopolitical developments illustrates the tenuous nature of investor confidence in the current economic climate. Despite these challenges, there remains optimism for recovery and growth in the cryptocurrency sector as regulatory advancements are anticipated in the coming years.
Original Source: arynews.tv
Post Comment