this week, Bitcoin (BTC) prices were roller coasters Who has kept traders, hodlers and observers with a well-open eye.
Bitcoin started about $84,000, surfaced the possibility of reaching 90,000, and suddenly he collapsed to close to 80,000 after the latest Donald Trump tariff ads.
What’s going on? To understand this shaking, let’s break down five basic keys.
1) Donald Trump strengthens the tariff war
This week’s protagonist was the President of the United States. Donald TrumpWho is faithful to the protectionist style of his movement «Maga – Make America Great Again«, Announced a new round of “mutual” tariffs that shook the global market.
As Cryptootics reported from the White House Rose Jardin on April 2, Trump detailed his plans, including tariffs on dozens of countries, including Latin America, the European Union, Canada and China.
His argument is simple. It is to balance the US trade balance in the face of unfair practices from other countries that have been ongoing for decades.
These ads are not isolated events. Since February, Trump had already signed orders imposing tariffs on Canada, Mexico and China.
Now on this mountain climb, The market reacted nervously Because they are breaking the “rules of the game” – without importing whether they are fair or unfair – they endured for decades.
The fear of the world trade war has been set up. In the case of Bitcoin, this macroeconomic context is fundamental. This is because they are not directly linked to international trade, but feel the impact of uncertainty these measures unleash.
2) “Risk” assets are harmed
When Trump squeezes the tariff button, Investors tend to run to safe shelters: dollar, gold, or treasure bonds.
This brings together “risk assets” and places action, bitcoin, cryptocurrency, emerging markets and more vulnerable. This week was no exception. After the announcement on April 2nd, US actions fell apart.
Even the gold that we touched on the record the previous week fell slightly due to the strength of the dollar, as seen in the image below.
Here’s the reason: Tariffs can increase imports and shoot inflation in the US The Federal Reserve also forces them to reconsider interest rate reduction policies.
If prices rise (or stay high for several months), “risk” assets become less attractiveS, because investors prefer security in guaranteed returns.
Bitcoin, which had previously floated at around $84,000, was unable to escape this dynamic and began staggering when traditional markets showed signs of weakness.
3) Bitcoin is generally considered a risky asset (though it is not actually the case)
Here’s an interesting discussion. Bitcoin is usually labelled as a risk asset for its high volatility, its young age and historical correlation with markets such as the NASDAQ and the S&P 500.
Bitcoin fell from its $87,000 peak on Tuesday to $80,000 low on Thursday when Trump’s tariffs hit the bag this week. Cryptocurrencies were generally much larger than Bitcoin’s.
But is this fair? Some people argue that Bitcoin should not fall within that category. Unlike actions, it does not rely on the company’s cash flow or direct commercial policy. That offer is limited by design – with half of April 2024, it further reduced emissions, and the narrative as “digital gold” positions it as a potential shelter against inflation or dollar devaluation.
However, in reality Institutional investors who currently control much of the market treat it as a speculative asset. Until that perception changes, Bitcoin will continue to dance to the rhythm of the risk market, as we saw this week.
4) International impacts are still expected, but how will other countries respond?
Trump’s tariffs are not a one-sided game. The world is preparing to find answers. Cryptooticias reported it this morning China is already “counter” and tariffs on US imports are rising.
These reactions have consequences. As the commercial war intensifies, it shoots global inflation, affects purchasing power, and affects central banks to adjust their policies.
For Bitcoin, this is a double currency. On the other hand, uncertainty can further sink risk assets. On the other hand, a dollar depreciation or economic crisis could enhance its appeal as a value reserve.
This week, the collapse to $80,000 reflected the first scenario, but the second scenario is still on the horizon, depending on how he plays world leaders in the coming days.
5) Bitcoin is very resistant
Despite the fear, Bitcoin shows incredible resilience. It never sunk under any critical support, such as $80,000. Compared to past falls, this correction was moderate for now, at least.
There’s a reason for optimism. First, Trump’s writing policies, such as Bitcoin’s Strategic Reserve, are still on the radar.
Second, macroeconomic conditions such as the promised Fed fee reductions over the remainder of the year remain tail winds.
Third, the increase in capital letters on stubcoins provides stability in the cryptocurrency ecosystem.
This requires adding financial offers from around the world that continue to break historic maximums, as reported in this useful portal (and it is no coincidence that the price of Bitcoin is correlated with this offer, as seen in the image below).
If tariffs rise beyond what has been announced and the market is not adjusted, Bitcoin can resume at $90,000. So the rebound could be around the corner.
(tagstotranslate)Bitcoin (BTC)
