Key Points
- Bitcoin’s value drops below $85,000 following President Trump’s announcement of new tariffs on European imports.
- Security concerns and macroeconomic uncertainty contribute to the cryptocurrency market’s decline.
The value of Bitcoin has plummeted below the $85,000 mark. This sharp decrease is a reaction to President Donald Trump’s recent declaration of new tariffs on European imports.
Trump’s Tariff Announcement Impacts Crypto Market
At his initial cabinet meeting on February 26, President Trump confirmed his plan to impose a 25% tariff on goods from the European Union. This decision has had a substantial impact on the cryptocurrency industry.
Bitcoin is currently experiencing a 4% decrease, with its trading value standing at approximately $84,600. The wider cryptocurrency market is also feeling the effects, with the total market cap decreasing by 4% following Trump’s announcement.
Market Decline and Security Concerns
Data from CoinGlass reveals that total liquidations have exceeded $765 million in the past day, adding to the $1.5 billion loss on February 25. SoSoValue data indicates that this market decline has coincided with the largest single-day withdrawal from Bitcoin ETFs since their creation, with $937.78 million withdrawn on February 25. This change illustrates the shift in institutional investors’ sentiment, with total outflows for the past week nearing $1.5 billion.
Since Trump assumed office in January, Bitcoin has seen a 20% drop from its peak value of $109,225. Following Trump’s election victory and the hopeful anticipation of a more crypto-friendly regulatory environment, there was a period of positive momentum. However, this has been followed by the current sell-offs. The hopes for swift implementation of pro-crypto policies have dwindled as the administration appears to be prioritizing aggressive trade policies.
The market’s liquidity has been affected by the collapse of the Solana memecoin boom, and concerns over the security of centralized exchanges have been heightened by the unresolved $1.4 billion Bybit hack. While some analysts view this correction as a healthy reset, others warn that a further decline below $80,000 could trigger another round of liquidations, potentially pushing Bitcoin towards $70,000. Traders remain cautious amidst increasing macroeconomic uncertainty, awaiting potential regulatory changes that could restore trust in the digital asset market.