Bitcoin Dips Below $80K Amid Trump’s Trade Tariffs Impact on Market Volatility
Bitcoin has dipped below $80,000 following a 7% rebound due to new tariffs imposed on Canada by President Trump. The S&P 500 has also experienced a decline while market analysts express caution about Bitcoin’s potential for new long-term lows in the face of continued volatility and resistance at key price levels.
Bitcoin (BTC) has seen a decline below the $80,000 mark, cooling off from a recent 7% rebound that occurred following the opening of Wall Street on March 11. The cryptocurrency peaked at approximately $82,154 on Bitstamp before returning to lower levels as concerns about new tariffs on Canada by President Donald Trump sparked market anxiety. The ongoing volatility in stock indexes has also compounded these fears, with the S&P 500 registering a decline of 0.5% at that time.
The recent tariffs have dampened the risk appetite of investors. Despite the US JOLTS job openings data slightly exceeding expectations, it was the announcement of enduring trade tariffs that ultimately deflated market optimism. Notably, The Kobeissi Letter reported that the S&P 500 has fallen by 7% since January 20, despite having been up by 5% at a similar point during Trump’s previous term. It further noted the challenges posed by Trump’s indifference to recession risks on high-risk assets.
On a brighter note, QCP Capital highlighted that not all market signals are negative, suggesting some silver linings amid the tumult. Additionally, the US dollar index dipped to 103.32, marking its lowest level since mid-October 2024. Analysts remain cautious, with market observers indicating that Bitcoin is at a pivotal moment due to a lack of clear positive indicators.
Price analysis from More Crypto Online, utilizing Elliott Wave theory, outlines critical support and resistance levels, warning of potential new long-term lows for Bitcoin if resistance remains unbroken. Meanwhile, trader CrypNuevo noted a significant response at the 50-week simple moving average (SMA) around $75,500, a support trendline that has not been breached since March 2023.
In summary, Bitcoin’s recent dip below $80,000 is primarily influenced by new trade tariffs imposed by President Trump, which have contributed to market volatility and a decline in the S&P 500. Analysts caution about potential new lows for Bitcoin while recognizing some siver linings in the market. The cryptocurrency remains at a crossroads with analysts closely monitoring critical support levels going forward.
Original Source: www.tradingview.com
Post Comment