Bitcoin Plunges Below 200-Day SMA as U.S. Tariffs Boost Dollar

Bitcoin, the world's largest cryptocurrency, experienced a significant drop on Friday, falling below the 200-day simple moving average (SMA) and recording a weekly loss of 16%. The price of Bitcoin briefly dipped below the $80,000 mark for the first time since November 11, as renewed concerns about U.S. tariffs boosted demand for the U.S. dollar.

Other cryptocurrencies also posted substantial losses. XRP, a payments-focused cryptocurrency, lost the key 23.6% Fibonacci retracement level, suggesting potential deeper losses in the future. Solana's SOL slipped to $125.6, its lowest level since September, while Dogecoin (DOGE) fell below 20 cents, retracing nearly 78.6% of its October-December rally.

President Donald Trump announced on Thursday his intention to impose tariffs on Canada and Mexico, starting March 4, alongside doubling the 10% universal tariff charged on imports from China. This news reignited concerns about global trade tensions and drove up demand for the U.S. dollar.

The dollar index, which measures the greenback's value against major currencies, rose to 107.30, extending its bounce from Wednesday's lows near 106.15. ING, a multinational banking and financial services corporation, noted in a client note on Thursday that they expect U.S. tariffs to regain centrality and drive the dollar sustainably higher.