Bitcoin Plunges Below $80K as Tariffs Boost Dollar

Bitcoin (BTC) has dipped below the $80,000 mark, marking a significant decline from its recent highs. This downturn comes amidst escalating concerns surrounding U.S. tariffs and a growing demand for the dollar. According to Coindesk’s Omkar Godbole, Bitcoin experienced a notable 16% decline over the week, slipping below the key SMA200 moving average on Friday. This drop brings Bitcoin’s price to levels not seen since November 10.

Former President Trump’s announcement of plans to implement tariffs on Canada and Mexico, starting March 4, and increase the existing tariff on Chinese imports to 20%, has reignited market focus on the dollar. Analysts at the Dutch International Group (ING) have indicated that these tariff discussions will likely further bolster the dollar’s strength. The dollar index has already seen a rise to 107.30, recovering from a recent low of 106.15 observed midweek, emphasizing the currency’s rebound amidst fluctuating crypto values.

The recent decline in Bitcoin’s price can be attributed to a combination of factors, including the escalating U.S. tariff concerns and the strong demand for the dollar. As the dollar index continues to rise, investors may be drawn to the relative safety and stability of the greenback, potentially leading to a decrease in demand for riskier assets such as Bitcoin. Additionally, the record ETF outflows and economic skepticism may further contribute to the decline in Bitcoin’s price.

As the situation unfolds, market participants will be closely monitoring the developments surrounding U.S. tariffs and the dollar’s strength. The outcome of these factors will likely have a significant impact on the cryptocurrency market, with Bitcoin’s price potentially experiencing further declines or rebounds in the near future.