Bitcoin Price Decline Linked to Market Turmoil and Upcoming Crypto Summit
Bitcoin’s price fell to $88,020 amidst a broader market downturn, coinciding with a 2% drop in Nasdaq due to tariff news. Recent comments by US officials regarding tariff changes contributed to ongoing market volatility. The decline occurred just ahead of Donald Trump’s upcoming crypto summit, where he will unveil plans for a national crypto reserve.
On Thursday, Bitcoin experienced a significant decline, falling roughly 2% to reach $88,020. This drop occurred amidst a broader market downturn, leading to a 3% decrease in the total crypto market value, which now stands at just over $3 trillion. The decline coincided with a 2% crash in Nasdaq as Wall Street grappled with various tariff-related news.
The US dollar also weakened following comments from Commerce Secretary Howard Lutnick regarding potential tariff reductions for Canada and Mexico. This volatility has been further exacerbated by ongoing uncertainty regarding US trade policies, which Canadian Foreign Minister Mélanie Joly characterized as a “psychodrama.” In addition, mixed US labor data and a vital payroll report are contributing to the market’s instability.
Amidst this turmoil, several technology shares, including Nvidia, suffered selloffs. Notably, Bitcoin’s decline occurred just one day prior to Donald Trump’s anticipated crypto summit, where he is set to engage with leading figures in the cryptocurrency sector. At this event, President Trump is expected to elaborate on his intentions for a national crypto reserve—an initiative he initially proposed as a Bitcoin reserve during his campaign but later expanded.
Bitcoin’s price previously plummeted to $79,800 in February, marking its worst month since 2022, largely due to uncertainties linked to Trump policies, memecoin controversies, and the significant $1.5 billion hack of Bybit.
The recent decline in Bitcoin’s value highlights the considerable impact of trade policy uncertainty on digital asset markets. With macroeconomic factors at play and critical events such as Trump’s crypto summit on the horizon, continued volatility is expected. Stakeholders should remain vigilant regarding ongoing developments in trade negotiations and their ramifications for cryptocurrencies.
Original Source: www.dlnews.com
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