Trump's Tariff Threat Triggers Bitcoin Selloff: Analysts Warn of Further Downside

Source: CryptoNewsNet Original Title: Trump’s Tariff Crisis Dropped Bitcoin Price! Analyst Warns: “These Levels Could Be Seen!” Original Link:

Market Reaction to Trade Tensions

The cryptocurrency market experienced a sharp decline following President Trump’s tariff announcements. Bitcoin (BTC) plummeted from around $95,000 to $92,000 within a few hours. This decline also affected altcoins, with major altcoins such as Ethereum (ETH), XRP, and Solana (SOL) losing 3%, 4.4%, and 6.3% respectively.

The decline was attributed to Trump’s threats to impose tariffs in an attempt to acquire Greenland. Trump announced on Saturday that a 10% tariff would be applied to imports from eight NATO allies (Denmark, Norway, Sweden, France, Germany, the United Kingdom, the Netherlands, and Finland) from February 1 until June. Trump also warned that if no deal is reached for Greenland, the rate could rise to 25% by June.

Renewed trade war fears triggered a sell-off in Bitcoin and altcoins, while traditional safe-haven assets like gold and silver rose in value. This triggered the liquidation of $860 million worth of BTC long positions in the last 24 hours.

Crypto Market Weakness Persists

Speaking to The Block, Presto Research analyst Min Jung said: “The crypto market continues to show weakness compared to other asset classes. While US-EU trade war concerns are significantly impacting crypto market sentiment, other risky assets, including KOSPI, are showing gains. This indicates that crypto-specific weakness persists and investors are preferring other risky assets.”

Rachael Lucas, an analyst at BTC Markets, noted that the decline in Bitcoin and altcoins was not solely due to concerns about the US-EU trade war, but rather brought a new wave of downturns to an already nervous market.

“The US-EU tax tension added a layer of geopolitical uncertainty that markets couldn’t handle. While the tax news is being widely discussed, it’s not the main driving force behind the current pullback in crypto.”

Technical Factors and Previous Headwinds

Lucas stated that the crypto market had already begun to deteriorate following the suspension of the US cryptocurrency market structure bill. Following Coinbase’s withdrawal of support for the bill, the Senate Banking Committee indefinitely postponed its consideration.

The decline in Bitcoin was also attributed to profit-taking. “The recent break below the 50-week moving average in Bitcoin triggered algorithmic selling,” Lucas added.

Price Targets and Outlook

Lucas warned that if macroeconomic pressures continue, Bitcoin could fall to the $67,000 to $74,000 range in the coming days. However, Lucas also noted that these drops were unlike past crypto winters, suggesting a different market dynamic at play.