Bitcoin Plunges Amid Trump Tariffs and Economic Uncertainty

Bitcoin prices have been volatile in recent days, with market sentiment worsening amid President Trump's tariff plans and broader economic uncertainty. The crypto market has resumed its downward trajectory after a brief recovery from the turbulence triggered by Trump's announcement of a 25% tariff on the European Union during his first cabinet meeting. Speaking at the meeting, Trump said, "We have made a decision and we’ll be announcing it very soon. It’ll be 25 percent generally speaking, and that will be on cars and all other things."

The global crypto market capitalization has declined by 3.61% in the past 24 hours, settling at $2.83 trillion. Bitcoin, mirroring the broader market sentiment, is trading at $86,112.34 after a 3.01% drop, marking its third consecutive day of losses. The leading cryptocurrency briefly plunged to $82,256—its lowest since 11th November 2024—before seeing a slight rebound. However, market data indicates that further corrections may be on the horizon before stability returns.

Independent market analyst Scott Melker posted a chart and said, "Bullish divergence with oversold RSI STILL very much in play. At the moment, RSI still is making a higher low. We need to see a clear “elbow up” on the next candle to confirm. Noting here yet." As Bitcoin teeters on the edge of the $80,000 range, market sentiment has significantly declined. The Crypto Fear & Greed Index has plunged to 10, its lowest level in a year, signaling “extreme fear.” Traders remain divided on where Bitcoin may find a stable floor, with many anticipating a potential bottom between $80,000 and $71,000.

Data shared by Velo on X (formerly Twitter) paints a grim picture, marking Bitcoin’s worst three-day performance since 2022, accompanied by substantial capital outflows from spot BTC ETFs. Beyond market turbulence, broader economic concerns loom, as the Trump administration has issued directives to federal agencies outlining plans for large-scale layoffs, adding further uncertainty to the financial landscape. This has also triggered a sell-off in U.S. equities, with the S&P 500 declining amid mounting economic concerns.