Bitcoin price experienced a significant drop to $82,143 on Wednesday following President Donald Trump’s announcement of sweeping tariffs on multiple trade partners. The tariffs, including rates of 26% on Indian imports, 20% on European Union goods, and 34% on Chinese exports, have raised concerns about escalating global trade tensions. Trump’s aggressive stance on trade policies aims to address what he deems as unfair trade practices by major trading partners.
In response to Trump’s announcement, financial markets reacted with turmoil, leading to a sharp decline in Bitcoin price and other speculative assets. Bitcoin price plummeted to $82,143, erasing gains from previous days. Investors fear that the global economic stability could be disrupted, leading to a decrease in liquidity in assets like Bitcoin. In contrast, safe-haven assets like Gold (XAU) saw a surge in price, reaching all-time highs near $3,200, as investors sought security amid uncertain market conditions.
Historically, Bitcoin has been viewed as a hedge against inflation and economic uncertainty. However, since Trump took office, BTC has shown a correlation with US stocks due to the involvement of the US government and major players like Blackrock and Michael Saylor’s Strategy. As a result, Bitcoin price is expected to follow the movements of US stocks in the coming weeks, according to experts.
Following the drop in Bitcoin price to $82,143, the cryptocurrency is currently stabilizing around $83,178, with technical indicators suggesting bearish pressure persists. The Bollinger Bands indicate contracting volatility, with the price approaching the lower band at $80,871. If Bitcoin breaks below this level, further losses could be expected. The MACD indicator is bearish, signaling downside risks, while the VWAP shows Bitcoin hovering near a key liquidity zone.
The Bitcoin price forecast remains cautiously bearish, with resistance at $84,498 and support at $82,000. A break below $82,000 could intensify selling pressure, aligning Bitcoin with broader market uncertainty following Trump’s tariff announcement. On the other hand, a close above $84,498 may trigger a short-term rebound, targeting the upper Bollinger Band at $88,125. However, with declining volume and weakening bullish momentum, the upside scenario remains uncertain in the short term.
In conclusion, Bitcoin price took a hit following Trump’s tariff announcement, causing a drop to $82,143 as global markets reacted with uncertainty. As investors turned to safe-haven assets like Gold, Bitcoin faced selling pressure and remains cautiously bearish in the near term. The correlation with US stocks and the impact of geopolitical events on Bitcoin price underscore the need for careful monitoring of market conditions and technical indicators for traders and investors in the cryptocurrency market.
