Key Insights
- Bitcoin saw a dip of over 3%, testing the 200-day average at $83,200.
- Recent concerns over tariffs and economic impacts overshadowed President Trump’s cryptocurrency announcements.
- Ongoing tariff disputes between the U.S. and China are expected to intensify, affecting market confidence.
Bitcoin (BTC) bears are attempting to break through critical support levels as worries about macroeconomic factors overshadow President Donald Trump’s recent cryptocurrency-related announcements. The leading cryptocurrency’s price fell over 3% to $83,200, testing the important 200-day simple moving average (SMA), according to data from CoinDesk and TradingView. This marks over a 10% decrease since it peaked above $92,800 on Thursday.
The latest price drop coincides with escalating trade tensions, as China plans to impose tariffs on selected U.S. agricultural products in retaliation for President Trump’s hike on Chinese imports. Such market conditions create uncertainty for both traders and policymakers.
Federal Reserve Chairman Jerome Powell recently reiterated a cautious approach to interest rates while evaluating the impact of Trump’s policies. Following a disappointing U.S. nonfarm payrolls report, expectations for three possible Fed rate cuts this year have risen.
Analysts emphasize that the increasing focus on macro concerns has overshadowed Trump’s BTC stockpile announcement, leading to market losses despite seemingly positive news. As observed by the analytics firm IntoTheBlock, Bitcoin’s price fell from $90,000 to under $87,000 soon after the announcement.
Quote: “Despite the very positive news, Bitcoin fell 4%. It seems the market’s attention on Trump’s crypto actions is diminishing as fears of the tariff war grow.”
- Translation: Despite the very positive news, Bitcoin fell 4%. It seems the market’s attention on Trump’s crypto actions is diminishing as fears of the tariff war grow.
Also, Noelle Acheson remarked that BTC’s lackluster performance following the strategic stockpile announcement highlights the weight of macroeconomic issues on cryptocurrency assets.
