The world’s leading cryptocurrency, Bitcoin and the broader cryptocurrency market declined as economic uncertainty rose to a record high in the aftermath of Donald Trump’s tariffs.
Bitcoin dipped below the $80,000 support levels to $76,947.87, representing a 10% decrease from its previous high.
The downturn in the cryptocurrency market is largely attributed to the ongoing trade tensions between the U.S. and other global economies.
President Trump’s position on tariffs has not just thrown the global financial markets into turmoil but also increased global risk as investors looked to haven assets for safety.
Over the past 24 hours, the market saw $250 million in liquidations, the highest volume since early March.
Market Analysis:
Technical indicators are suggesting that Bitcoin is in a bearish phase, especially seeing a “death cross” that was formed after the 50-day moving average crossed below the 200-day moving average.
Bitcoin’s support levels are seen around $74,000, $65,000, and $57,000, while resistance is expected around $87,000.
Other major cryptocurrencies also faced declines. XRP, Solana (SOL), and Dogecoin (DOGE) all experienced over 20% losses. These movements show the ongoing volatility in the cryptocurrency market and highlight the risks for investors in this space.
Impact of U.S. Tariffs:
The latest sell-off in cryptocurrencies coincides with growing fears over the impact of U.S. tariffs. As the trade conflict continues to escalate, cryptocurrencies are increasingly correlating with traditional markets.
Investors are pulling back from riskier assets, and Bitcoin, once seen as a hedge against inflation, has been caught in the global market downturn.
What’s Next for Bitcoin?
The immediate outlook for Bitcoin and the broader cryptocurrency market remains uncertain. The price fluctuations are largely driven by global economic factors and market sentiment.
Bitcoin’s long-term potential remains intact, but in the short term, price volatility is expected to continue.
Investors should closely monitor economic developments and trade negotiations, as they will likely influence market trends.
