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Highlights
- Trump confirms tariffs on Mexico, Canada, and China, causing Bitcoin to drop below $86K amid market instability.
- Bitcoin faces 4th consecutive loss, falling to $85,697 as tariffs on Mexico and China spark broader market concerns.
- Bitcoin ETFs see $2.1B in withdrawals, as tariffs and security breaches fuel market volatility and investor fear.
Donald Trump has confirmed that tariffs on Mexico and Canada will take effect on March 4 if drug flows into the United States are not reduced. He also announced an additional 10% tariff on China, while a 25% tariff on the European Union remains set for April 2.
The cryptocurrency market reacted negatively to the news, with Bitcoin dropping again toward $85,000 after experiencing sharp declines over the past few days.
Donald Trump Confirms Tariff Timeline on Mexico, Canada, and China
US President Donald Trump has stated that the United States will move forward with tariffs on imports from Mexico and Canada unless measures are taken to curb drug trafficking, especially fentanyl.
He emphasized the need to address the issue, calling the substances “dangerous and highly addictive poisons.”
He also confirmed that China will face an additional 10% tariff starting on the same date. “We cannot allow this scourge to continue,” Trump said, reiterating his stance on trade and national security. The reciprocal tariff on the European Union, set for April 2, remains unchanged.
Bitcoin Faces Steep Decline Following Announcement
Following Trump’s confirmation of the tariffs, Bitcoin price has experienced a decline, falling below $86,000 again. According to Coingape, Bitcoin price dropped by 0.51% to trade at $85,697, marking its fourth consecutive day of losses. The decline comes amid broader market concerns, with analysts warning of further corrections towards the $80K support before stability returns.
Independent analysts, such as Scott Melker, have observed that while Bitcoin’s Relative Strength Index (RSI) suggests it is oversold, a definitive rebound has yet to occur. Investors have shown growing concern as market conditions continue to worsen, with fears that Bitcoin could continue its downward trajectory, possibly testing the $80,000 support level. The uncertainty in the market is compounded by the broader economic environment, which remains unsettled due to rising tensions and Trump’s economic policy.
The decision to impose tariffs is seen as part of a broader strategy to address the drug crisis, but it has also contributed to increased financial volatility. The situation is further complicated by a major security breach in the cryptocurrency space, where a hack on Bybit resulted in $1.4 billion in losses, further diminishing investor confidence. These factors, along with Trump’s tariff plans, have created a perfect storm for market instability, leaving many investors on edge as they wait to see how the situation will unfold.
Crypto Market Outlook Amid Volatility
With Bitcoin price facing a challenging period, analysts have been cautious in their predictions for the cryptocurrency’s near future. Some experts speculate that Bitcoin may test the $80,000 mark in the coming days if the current downtrend continues.
The market’s extreme fear, as indicated by the Crypto Fear & Greed Index, suggests that many investors are already looking for exit opportunities, with significant withdrawals from Bitcoin ETFs further stressing the market. However, with the Bitcoin hash price period in this time in its lows, the BTC price dip may be nearing its end despite the tariffs announcement.
The broader crypto market has also seen significant capital outflows, with smaller investors leading the charge. In total, Bitcoin ETFs have experienced six consecutive days of withdrawals, totaling $2.1 billion. As liquidity continues to dry up, analysts are questioning whether Bitcoin can find new support or if further corrections are inevitable. The volatility continues to be a significant concern for investors, who remain uncertain about the direction of the cryptocurrency market in the coming weeks.
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