Bitcoin Plunges 7% After Volatile Week Amid Tariffs and Policy Shifts
1min read Bitcoin's price has experienced significant volatility over the past week, influenced by various economic and political developments. As of the end of the week, Bitcoin is trading at approximately $86,000, reflecting a 7% decline from its peak earlier in the week. Several key factors have contributed to this price movement, including the announcement of a strategic cryptocurrency reserve, the implementation of new tariffs, the outcomes of a summit on digital assets, and the latest U.S. Non-Farm Payrolls (NFP) report.
On March 2, the U.S. President unveiled plans for a strategic cryptocurrency reserve, dubbed the “Digital Fort Knox,” aiming to bolster the nation’s position in the digital asset space. This reserve is set to include major cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), Solana (SOL), and Cardano (ADA). The announcement led to a swift market reaction, with Bitcoin surging 13% moving from local lows around $78,200 to hit a monthly time frame peak of $95,000 within 48 hours of the announcement. Altcoins like XRP and Cardano saw even more substantial gains, with XRP rising by 40% and Cardano doubling in value. However, further market events prompted short-term traders to take profits, causing Bitcoin’s momentum to record 4 consecutive losing days as the week unfolded.
On March 3, the U.S. President announced a 25% blanket tariff on all imports from China and Mexico, aiming to protect domestic industries. This policy shift rattled global financial markets, leading to a sharp sell-off in risk assets, including cryptocurrencies. Bitcoin’s price retraced its earlier gains, dipping to a weekly low of $81,400 by March 4. In response to retaliatory measures from the affected countries and domestic pushback, the administration partially rolled back the tariffs. On March 6, the U.S. Secretary of Commerce announced exemptions for Mexican imports and a one-month delay for auto import tariffs. This policy reversal provided a relief rally for Bitcoin, contributing to consecutive days of price appreciation.
The week culminated with a summit on digital assets, where industry leaders and policymakers convened to discuss the future of cryptocurrencies. Prior to the summit, 