Impact of Donald Trump’s Tariff Policy on Cryptocurrency Market
Jakarta, Pintu News – Former President of the United States, Donald Trump, has confirmed that import tariffs on Mexico and Canada will go into effect on March 4 if drug trafficking into the US is not reduced. In addition, he also announced an additional 10% tariff on China and maintained a 25% tariff on the European Union, which is scheduled to begin on April 2.
The tariffs have sparked turmoil in the cryptocurrency market, with the price of Bitcoin experiencing a significant drop, approaching the $85,000 (Rp1.39 billion) level and potentially dropping further to $80,000 (Rp1.31 billion).
Tariff Schedule Confirmation and Impact on Global Economy
In his statement, Trump emphasized that this move aims to reduce narcotics trafficking, particularly fentanyl, which he called a “very dangerous and addictive poison.”
Additional tariffs on China of 10% will also come into effect on March 4, while tariffs on the European Union of 25% remain scheduled for April 2. This move is considered part of Trump’s strategy in dealing with the trade and national security crisis. However, it also increases economic uncertainty, which impacts financial markets at large, including cryptocurrencies.
Also Read: Cardano (ADA) Price Prediction by Alex Becker: Upside Potential or Excessive Speculation?
Bitcoin Experiences a Drop After Tariff Announcement
Since Trump’s tariff announcement, the price of Bitcoin has dropped back below $86,000 (Rp1.4 billion). Currently, BTC is trading at $85,697 (Rp1.39 billion), marking the fourth consecutive day of decline.
According to analysts, this increases the risk of Bitcoin testing the support level of $80,000 (Rp1.31 billion) before finding new stability.
Independent analysts such as Scott Melker note that Bitcoin’s Relative Strength Index (RSI) is showing oversold conditions, but there is no sign of a significant rebound yet. Investors are still concerned about the potential for further declines, especially as global economic conditions remain volatile.
In addition to the tariffs, the cryptocurrency market has also been destabilized by the hacking incident at Bybit, which caused $1.4 billion in losses. This event further reduced investor confidence, exacerbating the already high volatility in the crypto market.
Crypto Market Outlook in Volatility Situation
Amid market uncertainty, some analysts predict that Bitcoin could test the $80,000 level in the next few days if the downward trend continues.
The Crypto Fear & Greed Index shows that the market is in a phase of extreme fear, which prompted many investors to sell their assets early. In addition, there was a massive withdrawal of funds from Bitcoin ETFs, with total outflows reaching $2.1 billion (IDR 34.3 trillion) for the sixth consecutive day.
However, there is optimism that this downward phase may be coming to an end soon, given that the Bitcoin hash price has bottomed out in this period. If the market finds a strong support level, then there is a possibility of Bitcoin price recovery in the near future.
Conclusion
The tariff policy announced by Donald Trump has increased uncertainty in global financial markets, including in the cryptocurrency sector. Bitcoin experienced a significant drop, with the potential to test support at $80,000 before finding a new stable point.
On the other hand, high volatility, declining funds in Bitcoin ETFs, as well as massive hacks in the crypto sector have further worsened market sentiment. However, some analysts believe that this bearish phase could end soon, especially if investors start returning to digital assets once economic conditions stabilize.
Also Read: Bitcoin (BTC) Trend Not Over? CryptoQuant CEO Analyzes!
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*Disclaimer
This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Trading crypto carries high risk and volatility, always do your own research and use cold hard cash before investing. All activities of buying andselling Bitcoin and other crypto asset investments are the responsibility of the reader.
Reference:
- Kelvin Munene Murithi / Coingape. Donald Trump Clarifies Start Date for Tariffs on Mexico, Canada; Bitcoin to $80K? Accessed February 28, 2025.
- Featured Image: Bitcoin News
