Bitcoin Drops 10% to $109,008 as Trade Tariffs, Tax Cuts Fuel Uncertainty

Bitcoin experienced a notable decline on Tuesday, continuing its overnight downward trend. The primary driver behind this drop was the escalating uncertainty surrounding U.S. trade tariffs, which dampened investor risk appetite. This uncertainty was further compounded by the broad tax cuts and spending reduction bill supported by the administration. The market's reaction underscored Bitcoin's sensitivity to macroeconomic factors, particularly those related to trade policies.

The decline in Bitcoin's price was part of a broader market sentiment influenced by ongoing trade tensions and the potential impact of new tariffs on global trade. Investors, who had been optimistic about Bitcoin's potential as a hedge against inflation and economic uncertainty, became more cautious as the trade war intensified. The net outflow of 342 million dollars from Bitcoin spot ETFs on Tuesday reflected the macroeconomic uncertainty and the continued impact of the trade war.

Bitcoin's price fell to 109,008 dollars, driven by the uncertainty surrounding U.S. trade and tax legislation. This downward trend was a continuation of the overnight decline, primarily attributed to the increasing uncertainty about U.S. trade tariffs. The market's risk appetite was further suppressed by the broad tax cuts and spending reduction bill supported by the administration. This bill, aimed at stimulating economic growth, also introduced new uncertainties that affected investor sentiment.

The decline in Bitcoin's price was not solely due to trade tariff uncertainty. It was also influenced by the broader market sentiment, affected by ongoing trade tensions and the potential impact of new tariffs on global trade. Investors, who had been bullish on Bitcoin due to its potential as a hedge against inflation and economic uncertainty, became more cautious as the trade war escalated. The net outflow of 342 million dollars from Bitcoin spot ETFs on Tuesday further reflected the macroeconomic uncertainty and the continued impact of the trade war.

The decline in Bitcoin's price was a reflection of the broader market sentiment, influenced by ongoing trade tensions and the potential impact of new tariffs on global trade. Investors, who had been optimistic about Bitcoin's potential as a hedge against inflation and economic uncertainty, became more cautious as the trade war intensified. The net outflow of 342 million dollars from Bitcoin spot ETFs on Tuesday further reflected the macroeconomic uncertainty and the continued impact of the trade war.