Bitcoin is facing uncertainty amid US President Donald Trump's tariff decisions, which are causing volatility in the cryptocurrency market. Here's an update on the situation:

Current Situation

Bitcoin's value has been impacted by Trump's tariff policies, with the cryptocurrency dropping below $84,000 and falling over 5% in 24 hours after Trump confirmed a 25% tariff on the European Union. This move has reignited fears of economic disruption, leading to renewed selling pressure across traditional and crypto markets ¹.

Expert Analysis

According to Swyftx lead analyst Pav Hundal, the ongoing loop of tariff uncertainty from Trump is the most significant risk for Bitcoin investors over the next two months. Hundal warns that if US policymakers delay monetary easing until they obtain "hard data" on the impact of Trump's tariffs, it could lead to a growth slowdown and cast a shadow over risk-on markets, including Bitcoin ² ³.

Potential Impact

The uncertainty surrounding Trump's tariffs has jeopardized the chances of reaching the inflation target this year, according to Hundal. If the uncertainty persists, Bitcoin could drop back below $100,000, giving bears a chance to regain control. However, if the tariffs are lifted, it could create a "glide path" for Bitcoin to reach $120,000 ³ ².

Market Reactions

The cryptocurrency market has responded strongly to the tariff announcements, with Bitcoin's price surging after Trump announced a delay in tariffs. For instance, Bitcoin's price jumped from $74,500 to over $82,000 after Trump's 90-day delay announcement in April. Similarly, the price of Bitcoin rose above $105,000 after Trump extended the deadline for tariffs on imports from the European Union to July 9 ⁴.

Conclusion

The ongoing tariff uncertainty surrounding Trump's policies is causing volatility in the Bitcoin market. While the potential impact on Bitcoin's value is significant, experts believe that a resolution to the tariff issue could lead to a surge in Bitcoin's price. As the situation continues to unfold, investors are keeping a close eye on US-China talks for any signs of a long-term trade agreement

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