Bitcoin stays flat at $116K despite Trump's new tariff storm.

Bitcoin stays flat at $116K despite Trump's new tariff storm.

Bitcoin (BTC) remains relatively flat at around $116,000 despite the latest round of tariff threats from President Donald Trump. The cryptocurrency has shown resilience against the backdrop of geopolitical tensions and trade policy uncertainties.

The latest tariff wave, scheduled to hit on August 7, is expected to raise the average U.S. import tax rate to 18.3%, the highest since the 1930s. This development has led to increased volatility in the crypto market, with Bitcoin briefly dipping to $114,000 before rebounding [1].

Long-term holders have been advised to use these tariff-induced dips to accumulate more coins, as the fundamental properties of Bitcoin remain unaffected by trade policies. The core math of cryptocurrencies, such as their supply dynamics and decentralized nature, are not directly impacted by tariffs [1].

However, the sentiment in the market has been significantly impacted by the persistent policy uncertainty. Investors and businesses are hesitant to take risks due to the lack of a coherent view of the near future. This has led to a decrease in investment and an overall bearish sentiment in the markets [1].

The latest tariff announcement from Trump has also contributed to the recent pullback in Bitcoin's price. The cryptocurrency briefly fell to $112,000, down by 8.9% from its all-time high, after the announcement and the subsequent weak jobs data from the U.S. [2].

Despite the recent volatility, Bitcoin is expected to rebound and form a strong break-and-retest pattern. The key support level at $112,000 has been confirmed, and as long as Bitcoin remains above this level, a crash below it may see it fall to the 100-day moving average at $107,890 [2].

Investors are advised to treat tariff-driven dips in crypto the same way they would treat any macro wobble. These dips present opportunities to build up positions intended for multiyear holding horizons. However, widespread panic is always a possibility if there's a major change seen as detrimental.

In conclusion, while the latest tariff threats from Trump have led to increased volatility in the crypto market, Bitcoin has shown resilience and remains a viable investment option for long-term holders. The key is to stay cool-headed and disciplined, focusing on the fundamentals of the cryptocurrency.

References:
[1] https://www.nasdaq.com/articles/are-trumps-tariffs-tanking-crypto
[2] https://crypto.news/bitcoin-price-crash-set-to-end-as-btc-hits-key-support/