Bitcoin (BTC) is navigating a complex landscape as U.S. tariff policies introduce significant market uncertainties. Analysts suggest that while these trade tensions pose risks, they could also set the stage for substantial gains if resolved favorably.

Key Highlights

  • Tariff Tensions Impacting Bitcoin: U.S. President Donald Trump's ongoing tariff threats have created a "tariff trap," leading to market volatility. Pav Hundal, lead analyst at Swyftx, identifies this as a major concern for BTC in the coming months.

  • Federal Reserve's Cautious Stance: The Fed maintained interest rates between 4.25%–4.50% on May 7, closely monitoring economic indicators affected by trade policies. Prolonged uncertainty could delay monetary easing, potentially impacting Bitcoin's performance.

  • Historical Sensitivity to Tariffs: Bitcoin's price previously dipped below $100,000 following tariff announcements but rebounded after a U.S. court blocked unilateral tariff impositions.

  • Potential for a $120K Rally: A resolution or easing of tariff tensions could pave the way for Bitcoin to reach $120,000, aligning with bullish forecasts from analysts at Bitfinex.

Market Snapshot

  • Current BTC Price: $104,851

  • 24-Hour Change: -0.42%

  • Intraday Range: $104,505 – $105,484

Conclusion

Bitcoin's trajectory is closely tied to developments in U.S. trade policy. While current uncertainties pose challenges, a favorable shift could unlock significant upside potential. Investors should stay informed on policy changes and economic indicators that may influence market dynamics.

#BitcoinAnalysis #TradePolicyImpact #CryptoMarketUpdate

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📢Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always conduct your research before making investment decisions.