Key Points
- President Donald Trump’s new tariff threats may cause turbulence in the global crypto market.
- Bitcoin’s price is showing signs of weakness, potentially indicating increased market volatility.
President Donald Trump’s recent hint at implementing new reciprocal tariffs has the global crypto market preparing for potential instability.
Trump revealed on Thursday his intention to impose tariffs that mirror the rates other nations charge for American goods. This move could escalate global economic uncertainties, especially as Bitcoin, often viewed as a hedge against fiat instability, displays signs of weakness.
Trump’s Approach to Tariffs
The proposed tariffs by Trump aim to address what he labels as “unfair trade practices”. He targets countries such as India, Brazil, Vietnam, and others that impose high import duties on American goods. These reciprocal tariffs are expected to particularly impact developing economies, where there is a significant gap between US tariffs and foreign import duties.
Critics argue that these tariffs could burden American consumers by increasing the costs of imported goods. Meanwhile, ongoing trade discussions with Indian Prime Minister Narendra Modi suggest potential easing of tariffs on Indian exports. However, uncertainty hangs over broader trade relations, particularly with China and Mexico.
Bitcoin’s Uncertain Future
Bitcoin (BTC), often seen as a safeguard against economic turmoil, experienced a significant crash following Trump’s previous tariff announcement in early February. The leading cryptocurrency fell from $102K to $91K within hours but then rebounded to $98K the next day.
Currently, BTC is trading at $95,717, marking a 2.20% decline in the last 24 hours. The cryptocurrency briefly touched a high of $98,083, but selling pressure drove prices lower, with a daily low of $95,336.
The Relative Strength Index (RSI) for Bitcoin stands at 42.43, below the neutral 50 mark, suggesting strong bearish control. The slope of the line indicates weakening momentum and a potential move toward oversold conditions in the near future.
The MACD indicator remains bearish on the daily chart. Bitcoin’s price action is trading below the 20-day EMA of $98,406, reinforcing the short-term bearish outlook. However, analyst Ali Martinez highlighted that if Bitcoin dips below the 111-day moving average, which stands at $93,400, the market leader could experience a significant surge.
