Trump's Trade Wars Send Bitcoin, Tesla, and Dollar Tumbling

Bitcoin's value has been volatile in recent weeks, with a significant decline linked to President Trump's economic policies and trade wars. The cryptocurrency, along with Tesla and the US dollar, has experienced sharp drops, reflecting investor frustration with the lack of progress in regulatory reforms and the impact of trade wars on global markets.

Crypto analyst Crypto Rover summed up the sentiment, stating, "Trump promised us a strategic Bitcoin reserve. He gave us a trade war instead." Bitcoin, which had surged past $100,000 amid optimism for a second Trump administration, has now dropped below $85,310. Market analysis points to a lack of solid support between the $90,000 and $70,000 range, raising concerns about further declines.

The sharp fall comes as traders react to President Donald Trump's lack of concrete action to ease crypto regulations despite earlier promises. Tesla, often seen as a barometer of the so-called 'Trump Trade,' has also experienced a steep decline. Its stock, TSLA, is down nearly 40% since its peak following Trump's election victory. The electric vehicle giant fell almost 4% on February 26 alone, extending a losing streak that has seen its stock drop 24% for the year.

Investors are increasingly concerned that Tesla is being sidelined by CEO Elon Musk's focus on federal reforms. Furthermore, Musk's polarizing political stance has hurt Tesla's performance in Europe, where sales dropped 45% in January, despite the overall increase in electric vehicle sales in the region by 37%.

Similarly, the US dollar and Treasury yields, which had initially strengthened on expectations of Trump's economic policies, are now in decline. Analysts cite fears that Trump's aggressive trade policies—especially his newly announced tariffs—could lead to a resurgence of inflation while simultaneously slowing economic growth.

The Kobeissi Letter, a well-known financial analysis outlet, highlighted the wide-ranging impact of Trump's aggressive trade stance. The president recently announced sweeping tariffs, including 25% on Canada and Mexico, 25% on the European Union, 10% on China, and a potential 100% tariff on BRICS nations. These tariffs are expected to raise the cost of goods in the US, with inflation expectations surging and analysts warning that it