Bitcoin Plummets 6% to $82,143 as Trump's Tariffs Spark Global Market Turmoil

Bitcoin experienced a significant sell-off, plummeting to as low as $82,143 on Wednesday, following President Donald Trump's announcement of sweeping tariffs. This move sent shockwaves through global markets, with multiple nations, including India and the United Kingdom, considering retaliatory measures. The uncertainty sparked by these tariffs has driven investors towards safer assets, notably gold, which surged to an all-time high of $3,156.

Trump's tariff announcement, made during his 'Liberation Day' speech, included aggressive reciprocal tariff rates on numerous trade partners. The new tariffs, which range from 10% on UK goods to 46% on Vietnamese exports, have raised concerns about escalating global trade tensions. Trump emphasized that these tariffs are aimed at correcting what he perceives as unfair trade practices, particularly criticizing India for its high tariffs on U.S. goods. He cited a 52% tariff imposed by India on U.S. goods, contrasting it with the minimal tariffs the U.S. had previously imposed on Indian imports.

The cryptocurrency market reacted swiftly to the announcement, with Bitcoin leading the decline. Within hours, Bitcoin's price tumbled to $82,200, erasing gains from the previous days when prices had surged as high as $87,400. Investors fear that the aggressive tariff stance could disrupt global economic stability, reducing liquidity in speculative assets like Bitcoin and driving demand towards safe-haven assets such as gold. Historically, Bitcoin has often benefited from its status as a hedge against inflation and economic uncertainty. However, since Trump’s inauguration, Bitcoin has exhibited a close correlation to U.S. stocks due to the heavy involvement of the U.S. government and direct exposure from major financial institutions.

As a result, Bitcoin's price is likely to track U.S. stocks' movements in the coming weeks. Currently, Bitcoin is stabilizing near $83,178 after testing the $82,000 support level. Technical indicators suggest that bearish pressure still persists, with the Bollinger Bands indicating contracting volatility and the price nearing the lower band at $80,871. A break below this level could open the door to further losses. The MACD indicator is also bearish, with the signal line crossing below the MACD line, reinforcing downside risks. If Bitcoin fails to reclaim the 20-day moving average at $84,498, sellers could push it towards $80,000. Conversely, a close above $84,498 may trigger a short-term rebound, targeting the upper Bollinger Band at $88,125. However, with declining volume and weakening bullish momentum, the upside scenario remains uncertain.

In summary, the market reaction to Trump's tariff announcement has been swift and significant, with Bitcoin facing instant sell-offs and gold reaching new all-time highs. The uncertainty surrounding global trade tensions has driven investors towards safer assets, and Bitcoin's price is likely to remain volatile in the coming weeks as it tracks the movements of U.S. stocks. The technical indicators suggest a cautiously bearish outlook for Bitcoin, with key support and resistance levels to watch in the near future.