Bitcoin’s price fell sharply on Monday, dropping below $65,000 as investors reacted to former President Donald Trump’s announcement of increased tariffs on goods imported from around the world. The cryptocurrency experienced a decline of as much as 5%, according to reports from CNBC and TradingView.
Trump, speaking at a rally in South Carolina, proposed raising tariffs to 15% across the board, a significant increase from the existing 10%. This move, despite a recent Supreme Court decision regarding tariff authority, injected a new layer of uncertainty into global markets, impacting risk assets like Bitcoin. Barron’s reported the price drop coincided with the tariff announcement, characterizing the situation as “Trump tariff turmoil crushing cryptos.”
The decline in Bitcoin’s value likewise occurred alongside increased selling pressure from large holders, often referred to as “whales,” according to Investing.com. This combination of macroeconomic factors and internal market dynamics contributed to the downward trend. CoinDesk noted the price slip followed the tariff hike, adding to the market’s sensitivity to geopolitical and economic news.
The tariff proposal, if implemented, could have broad implications for international trade and economic growth. The increased cost of imported goods could lead to higher prices for consumers and businesses, potentially slowing economic activity. The uncertainty surrounding the policy’s implementation and potential retaliatory measures from other countries further fueled market anxiety. TradingView highlighted that the tariff announcement specifically knocked risk assets, signaling a broader investor concern.
As of midday trading, Bitcoin was trading below key support levels, prompting analysts to monitor the situation closely. The market’s reaction underscores its sensitivity to shifts in the global economic landscape and political developments. The White House has not yet responded to the former President’s proposal.
