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Bitcoin price crashes: Breaking down how Trump’s tariffs upset BTC
On April 2nd, a sudden shockwave rocked the cryptocurrency market as U.S. President Donald Trump announced an aggressive set of trade tariffs targeting 185 nations. The move sent Bitcoin [BTC] tumbling over 6% in a matter of hours, sparking widespread panic among traders and investors.
As the dust settles, it’s clear that this unexpected turn of events has taken its toll on the world’s largest cryptocurrency by market capitalization. In an unprecedented move, Trump imposed a minimum 10% tariff on all exports to the U.S., while China, India, Japan, and the European Union faced additional duties ranging from 20% to 34%.
Initial euphoria gives way to panic
Initially, some crypto enthusiasts celebrated the news as they believed it would spark an influx of new capital into Bitcoin. However, this optimism proved short-lived as the broader implications of the tariffs began to sink in. As investors realized that Trump’s actions threatened global economic stability and potentially sparked a recession, risk aversion set in, leading to a sharp decline in cryptocurrency prices.
The chart above shows the sudden crash in BTC’s price, which had been trading near $87K before the announcement. The asset has since stabilized around $82K, but its potential to rebound remains uncertain. The OBV indicator suggests waning buying interest, while the RSI hovers at 45, hinting at a neutral-to-bearish sentiment.
Bitcoin’s price drop is not an isolated incident; other major cryptocurrencies have also been severely impacted by this unexpected turn of events. Ethereum [ETH] plummeted by around 5%, with XRP and Cardano [ADA] following suit with declines of 4.6% and 4.9%, respectively. Solana [SOL] bore the brunt, falling by over 7%. Binance Coin [BNB] and TRON [TRX] took slightly less damage, but still posted losses of approximately 1.9% and 1.4%.
Market participants are currently in a wait-and-see mode, hesitant to commit funds due to the heightened uncertainty surrounding global economic prospects. The sharp decline in crypto prices serves as a stark reminder that this asset class remains deeply tied to traditional markets.
In conclusion, the Bitcoin price crash is a direct result of Trump’s tariffs, which have sparked widespread fear and risk aversion among investors. As we continue to monitor the market’s response to these developments, it remains crucial for traders and investors alike to stay vigilant and adapt their strategies accordingly.
Source: https://ambcrypto.com/bitcoin-price-crashes-breaking-down-how-trumps-tariffs-upset-btc
