Trump's Tariffs Spark Bitcoin's 5% Plunge

Bitcoin's recent 5% decline has sparked debate on the impact of U.S. President Donald Trump's tariff policies on the cryptocurrency market. As global trade tensions escalate, investors are closely monitoring Bitcoin's price movements and their correlation with broader market trends.

Trump's tariff threats against Canada, Mexico, and China have sent shockwaves through global markets, with Bitcoin reacting to the increased uncertainty. The cryptocurrency plunged from $105,000 to $92,000 over the weekend, tracking broader market unease. While Bitcoin showed weakness, other cryptocurrencies like Ethereum (ETH) and Dogecoin (DOGE) suffered steeper declines. Notably, Trump's meme coin, which initially surged after its launch, has now plunged 75% from its peak, currently trading at $19.

Trump's protectionist policies have fueled volatility in crypto markets, with Bitcoin's price movements increasingly mirroring tech stocks. Nic Carter of Castle Island Ventures noted, "Bitcoin is now a macro asset. It has gained institutional credibility but is also more exposed to liquidity risks and macroeconomic factors."

Bitcoin's institutional adoption has been a double-edged sword. While it has fueled the cryptocurrency's rise to an all-time high of $109,000, it has also heightened its vulnerability to central bank policy shifts, trade disputes, and regulatory changes. Like big tech stocks, BTC now reacts sharply to Federal Reserve rate decisions and geopolitical developments.

Despite short-term price swings, Trump's pro-crypto stance continues to support the industry. Once a skeptic, he now champions the U.S. as the "crypto capital of the world," appointing pro-blockchain regulators to key positions. This political shift reinforces Bitcoin's long-term bullish outlook.

As of now, Bitcoin is trading at $96,200, down 5% for the week, with market uncertainty weighing on sentiment. The 50-day EMA at $98,700 remains a key resistance level, capping recovery attempts. Bitcoin's price action is forming a symmetrical triangle, a pattern often signaling an imminent breakout—with a bearish tilt. If BTC fails to hold $95,100, a deeper correction is likely. However, a breakout