Trump's 10% Tariff Announcement Sends Bitcoin Plunging 4%

On April 3rd, former U.S. President Donald Trump announced a 10% "baseline tariff" on all global goods, with higher tariffs imposed on countries with the largest trade deficits. This announcement triggered a wave of market panic, as investors grew concerned about the potential escalation of global trade tensions and the risk of a global economic recession.

In response to the news, Bitcoin (BTC) experienced a temporary drop to $82,000, marking a 4% decrease. Other major cryptocurrencies, including Ethereum (ETH), Ripple (XRP), and Solana (SOL), also saw simultaneous declines. The market's reaction reflects the heightened risk aversion sentiment, as investors worry about the potential impact of the tariffs on global economic growth and investment sentiment in risk assets.

According to a Bitunix analyst, the escalating global trade war risk has increased market risk aversion, putting short-term pressure on risk assets. The analyst suggests that BTC's short-term support level is at $82,000, and if this level is breached, it may further test the $78,000 mark. In the short term, the key resistance level to watch is $84,500, and a breakthrough above this level could lead to a rebound to $87,000.

The analyst also notes that while Bitcoin may come under short-term pressure if the global market plunges further into a trade war and economic recession, it still holds long-term hedging potential. Investors are advised to closely monitor market trends and seize key trading opportunities as they arise.