Key Points
- Bitcoin’s price dropped by over 6% following President Trump’s new tariffs announcement.
- Global markets are bracing for further fallout as tariffs affect Bitcoin and altcoins.
The cryptocurrency market is feeling the impact of U.S. President Donald Trump’s most recent trade tariff announcement.
Bitcoin Takes a Hit
Bitcoin [BTC], the leading digital currency, was significantly affected, with its price dropping by over 6% after the announcement on April 2nd.
The fallout from Trump’s tariffs, which target 185 nations, has been immediate. Asset prices are plummeting and liquidations are hitting hard.
The global economy is preparing for the ripple effects. The question now is whether Bitcoin can weather this storm or if it’s the start of a deeper downturn.
Global Impact of Trump’s Tariffs
Trump announced a vigorous set of tariffs on Wednesday, shaking the global financial markets.
A minimum 10% tariff will be imposed on all exports to the U.S., with additional duties targeting 60 countries with the largest trade imbalances with the superpower.
China was the hardest hit, with a steep 34% tariff, followed by India (26%), Japan (24%), and the European Union (20%).
Despite the initial positive reaction in the crypto market, with a brief uptick following the 10% universal tariff announcement, the market quickly turned.
As the full extent of the tariffs became apparent, sentiment shifted and prices across the board began to fall. Bitcoin, which had been trading near $87K, experienced a significant dip to as low as $82K before a slight recovery.
Bitcoin Struggles to Recover
After the sharp drop triggered by Trump’s tariff announcement, Bitcoin attempted to stabilize near the $83,000 mark.
The latest hourly chart shows a mild recovery after the initial plunge, but momentum remains weak.
The OBV indicates declining buying interest, while the RSI hovers around 45, suggesting neutral to slightly bearish sentiment. With volume decreasing, Bitcoin’s ability to reclaim higher levels is uncertain.
As the market absorbs the broader economic implications, cautious trading is likely to continue.
The impact on altcoins is yet to be fully understood.
