Bitcoin has fallen below the psychological $100,000 mark for the first time since January 27, causing market apprehension. But what caused this move? Like this post and keep reading to understand the details!
The main reason for this volatility was US President Donald Trump’s decision to impose new import tariffs on products from China, Canada and Mexico. The measures include a 25% increase on Canadian and Mexican imports, as well as an additional 10% tariff on Chinese products. In response, the affected countries have already announced retaliation, generating uncertainty in global markets.
Direct impact on Bitcoin and the financial market
The tariffs could fuel inflation and, consequently, lead to higher interest rates in the U.S. This is causing investors to shift to safer assets, away from cryptocurrencies and towards bonds and term deposits. As a result, Bitcoin plunged to $99,111 before partially recovering to $99,540, according to CoinMarketCap. Data from CoinGlass shows that more than $22.7 million in long positions were liquidated within hours of the announcement.
Divergent opinions in the crypto sector
The crypto community is divided on how these tariffs will impact the market. While some experts believe that this tension could benefit Bitcoin ($BTC ) in the long run, others warn of the risks of a global economic crisis.
Crypto Capital Venture founder Dan Gambardello downplayed the impact of the tariffs: “BlackRock continues to pile on $ETH and $BTC while retail goes into a frenzy of panic because crypto is consolidating.”
Adam Cochran, partner at Cinneamhain Ventures, sees a more pessimistic scenario: "Bitcoin is not yet sufficiently decoupled from global markets. A crisis of this magnitude could cause pain for everyone."
What to expect from now on?
With trade tensions rising and global markets reacting, investors should keep an eye on the next moves. Bitcoin could benefit in the long term as a hedge against crises, but in the short term, volatility is likely to continue.
What do you think? Will these tariffs have a lasting impact on the crypto market? Let us know in the comments!
Fonte: Cointelegraph
Disclaimer: This content is not investment advice. Please do your own research and be fully informed before making any decisions.
