The imposition of new tariffs by President Donald Trump has caused significant volatility in the financial markets, including the cryptocurrency market. The price of Bitcoin (BTC) has dropped sharply from about $88,500 to $82,600 just three hours after this announcement.
Short-Term Analysis:
Market Sentiment: Panic and sell-offs have emerged following the announcement of tariffs, leading to a rapid decline in Bitcoin's price.
Key Support Levels: If Bitcoin cannot maintain the support level of $81,000, the price may continue to drop to lower levels, such as $73,000 or even $67,000.
Long-Term Analysis:
Macroeconomic Impact: The new tariffs could lead to a global economic downturn, negatively affecting risk assets like Bitcoin.
Monetary Policy: If central banks implement quantitative easing measures to counter the recession, this could create a favorable environment for Bitcoin to appreciate in the long term.
Trading Strategy:
Short-Term: Investors should be cautious and monitor key support levels. If the price breaks below $81,000, selling positions may be considered or waiting for a stabilization signal before buying in.
Long-Term: For long-term investors, accumulating Bitcoin at lower price levels could be an opportunity, especially if they believe Bitcoin will recover after economic fluctuations.
Investors should closely monitor economic developments and monetary policy to make informed decisions.
