Crypto Market Plummets Amid Trump’s 104% Tariff Shock
Bitcoin (BTC) plunged below $77,000 today as President Trump’s 104% tariffs on Chinese imports triggered a broad market selloff, dragging crypto alongside equities. The token has now erased 30% from its January all-time high of $108,000, with altcoins like Ether (ETH) crashing 10% in 24 hours.
Key Drivers:
1. Risk-Off Sentiment: Investors fled volatile assets as trade war fears escalated, with U.S. Treasury yields spiking and recession risks rising (Goldman Sachs: 45% probability).
2. Liquidation Wave: Over $745M in bullish crypto positions were liquidated, the highest in six weeks.
3. ETF Outflows: Bitcoin spot ETFs saw $5.5B in outflows YTD, compounding pressure.
Outlook:
Short-Term: Analysts warn of further drops to $70K–$75K if tariffs persist, with BTC’s correlation to equities strengthening.
Long-Term: Some remain bullish, citing Bitcoin’s halving cycle and institutional adoption as tailwinds for a potential $95K–$100K rebound by late 2025.
Action: Traders are hedging with puts, while DCA strategies gain traction. Watch $74K support and macro developments closely.
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