🔥 BITCOIN IS TRADING BELOW US$85,000 DUE TO TARIFF WAR AND RATE CUTS 🔥

$BTC Cryptocurrency prices extended their decline as rising tensions from the tariff war and lower prospects for new rate cuts from the Federal Reserve offset a wave of pro-cryptocurrency announcements from President Donald Trump last week.

Risk assets like cryptocurrencies are under pressure amid anxiety that tariffs and layoffs in Trump's administration will thwart growth in the world's largest economy. U.S. stocks plummeted and Treasury bonds rose as investors sought refuge.

"While Trump's announcement of a strategic cryptocurrency reserve initially generated optimism, the rebound quickly crumbled amid aggressive selling linked to worsening macroeconomic conditions," wrote Nikolay Karpenko, director of B2C2.

Bitcoin fell as much as 4.5% to US$79,334 on Monday, the lowest level since February 28, before trimming the loss. Solana, Cardano, and XRP, all coins that Trump had mentioned as potential candidates for a digital asset reserve but were not mentioned in Trump's executive order, also fell.

"The market perceived the summit as disappointing and major cryptocurrencies fell after it was revealed that the widely anticipated cryptocurrency reserve would only contain existing government holdings."