Bitcoin Plunges Below $80K as U.S. Tariffs Resurface

Bitcoin's price fell below the $80,000 mark on Friday, marking its lowest level since November 10, as renewed concerns over U.S. tariffs and a strengthening dollar led to a 16% weekly decline. The cryptocurrency briefly dipped below the SMA200 moving average line, according to Coindesk analyst Omkar Godbole.

On Thursday, former U.S. President Donald Trump announced his intention to impose tariffs on Canada and Mexico starting from March 4, while doubling the 10% universal tariff on Chinese imports. This move has reignited concerns about global trade tensions and the potential impact on financial markets.

The Dutch International Group (ING) released a report to clients on Thursday, stating that they expect U.S. tariffs to once again become a significant focus and drive the continued strengthening of the dollar. The dollar index rose to 107.30, rebounding from a low near 106.15 on Wednesday.

Asian markets have been displaying increased risk aversion in response to these developments, with investors seeking safer assets such as the U.S. dollar. This trend has contributed to the decline in Bitcoin's price, as the cryptocurrency is often seen as a riskier asset due to its volatility and lack of intrinsic value.

The re-emergence of U.S. tariffs as a market focus has raised concerns about the potential impact on global economic growth and trade relations. As the situation unfolds, investors will be closely monitoring the developments and their potential effects on financial markets, including the price of Bitcoin.