#BitcoinVsTariffs

The relationship between Bitcoin and tariffs is quite intriguing. Recently, when President Trump announced plans to impose tariffs on goods from Canada, Mexico, and China, Bitcoin's price took a hit, falling below $100,000 . This drop was part of a broader sell-off in financial markets, which were spooked by the prospect of a trade war.

However, when Trump announced a pause on tariffs on Mexican goods, Bitcoin rebounded, rising to around $99,000. This volatility highlights Bitcoin's sensitivity to macroeconomic uncertainty and its tendency to trade in tandem with risk assets, like tech stocks.

In fact, experts like Matt Mena, crypto research strategist at 21 Shares, note that cryptocurrencies tend to lead the selloff of risk assets during periods of macroeconomic uncertainty, especially during weekends. This is because digital assets trade 24/7, making them an immediate source of liquidity when unexpected events arise.

Overall, the Bitcoin-tariff dynamic is complex and influenced by various factors, including global economic trends, trade policies, and investor sentiment.