Bitcoin's Price Plunge Looms as Tariffs and Inflation Fears Mount

Bitcoin Outlook Clouded by Tariff Tensions, Inflation Fears

The cryptocurrency market is facing renewed unease as escalating trade tensions and inflation concerns increase the likelihood of a significant bitcoin (BTC) price correction. Prominent asset management firm 21Shares has filed with the U.S. Securities and Exchange Commission (SEC) to launch a spot Polkadot exchange-traded fund (ETF) in the country. South Korea’s so-called bitcoin kimchi premium has surged to a 10-month high amid the recent cryptocurrency market downturn, suggesting significant resilience in South Korean exchanges amid the sell-off.

Derixe.xyz, a platform for on-chain options trading, shows a 22% probability of bitcoin’s price dropping to $75,000 by March 28, more than double the 10% seen just last week. The shift comes amid the recent import tariff war between the U.S. and its key trading partners, including Canada, Mexico, and China. The tariffs, according to market analysts, could fuel inflation, complicating central banks’ efforts to lower interest rates and dampening investor sentiment in cryptocurrency markets.

Bitcoin is down more than 8% over the past week to now trade at $95,155, while the second-largest cryptocurrency by market capitalization, Ethereum’s ether, is down some 18% in the same period to now stand at $2,550. The cryptocurrency appears to be forming a double-top reversal pattern, which could see it drop to $75,000. The move would be consistent with a recent prediction from Arthur Hayes, chief investment officer of Maelstrom and former BitMEX CEO, who said the cryptocurrency will drop to that level before embarking on a bigger bull run.