Bitcoin Tumbles: How Trump’s Tariffs Triggered a Crypto Market Crash
Why Bitcoin Tumbles Amid Global Market Uncertainty
The cryptocurrency market experienced a sharp decline following President Donald Trump’s latest tariff policies on major trade partners. The term Bitcoin tumbles has become a trending topic as investors react to the new economic landscape.
Bitcoin Tumbles After Trump’s Tariff Announcements
Bitcoin’s Price Drops Below Key Levels
On Monday, Bitcoin dropped 3%, falling to $94,457.88 from its previous price of over $102,000 before the weekend. The decline was driven by fears of a global economic slowdown. Meanwhile, the U.S. dollar index rose nearly 1%, demonstrating an inverse correlation with Bitcoin.
The Impact on Crypto Stocks
Major crypto-related stocks were also affected:
- Coinbase shares fell 6% in premarket trading.
- MicroStrategy saw a 7% decline.
Read more: DeepSeek’s AI claims have made waves globally — but skepticism remains.
Why Bitcoin Tumbles Following Tariff Announcements
The Connection Between Bitcoin and Global Trade
The sharp decline in Bitcoin and other cryptocurrencies started on Saturday evening after Trump signed an order imposing:
- 25% tariffs on imports from Mexico and Canada
- 10% duties on imports from China
Given that the U.S. conducts $1.6 trillion in trade with these countries, investors were quick to react, causing Bitcoin to tumble significantly.
Expert Analysis on Bitcoin’s Decline
James Davies, CEO of Crypto Valley Exchange, commented:
“Bulls are de-leveraging massively at the moment as everyone watches closely to see if we get negotiation or a trade war.”
How Other Cryptocurrencies Reacted as Bitcoin Tumbles
Ethereum Takes a Harder Hit
While Bitcoin’s drop was significant, Ethereum (ETH) saw a 12% plunge, falling to $2,600 from its previous level of $3,300. Meme coins were also among the hardest hit.
The Future of Bitcoin Amid Trade War Concerns
Jeff Park, head of alpha strategies at Bitwise Asset Management, expressed a long-term bullish sentiment:
“A sustained tariff war would be amazing for Bitcoin in the long-run due to an eventual weakening of the dollar and U.S. rates.”
Short-Term vs. Long-Term Bitcoin Market Trends
Bitcoin as a Risk Asset in the Short Term
While Bitcoin is seen as a hedge against inflation, it behaves like a risk asset in the short term. The uncertainty surrounding the trade war could lead to further volatility in February 2025.
Geoff Kendrick, an analyst at Standard Chartered, noted:
“Bitcoin will eventually benefit from today’s U.S. Treasury yield mix, but until nominal yields roll lower on growth fears, BTC may remain volatile.”
Key Support Levels to Watch
Investors are eyeing $90,000 as the critical support level. A significant break below this could lead to a further pullback toward $80,000.
Historical Market Patterns
Bitcoin is currently 12% off its record high of $109,350.72, set on January 20, 2025. However, experienced investors recognize that 30% corrections are common in bull markets.
Conclusion: What’s Next After Bitcoin Tumbles?
While Bitcoin’s short-term outlook remains uncertain, the long-term fundamentals remain strong. Whether this market crash is a temporary setback or a prolonged downturn remains to be seen, but seasoned investors know that volatility is part of the crypto game.
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