Bitcoin Plummets Amid Trump’s Tariff Impact: What’s Next?

Bitcoin, the leading cryptocurrency, experienced a significant drop due to the shockwaves from former U.S. President Trump’s proposed reciprocal tariffs. According to Coinbase, the price of Bitcoin fell by 4.7% in the last 24 hours, trading at $79,090 as of 4:35 PM Eastern Time. Earlier, it dipped to $78,625, marking a 4.99% decrease.

The decline began on March 3rd, following Trump’s tariff announcement. After hovering around the $80,000 mark, Bitcoin started its steep descent. Treasury Secretary Scott Besant’s comments on NBC, stating that reciprocal tariffs couldn’t be negotiated in weeks, further dampened investor hopes.

CoinDesk reports that increased macroeconomic uncertainty from Trump’s tariff policies is driving the sell-off. NYDIG data indicates Bitcoin’s price fell by 11.7% in Q1 2024, its worst Q1 performance in a decade since 2015.

While Bitcoin has outperformed the stock market recently, its future trajectory remains uncertain. Investors should remain cautious and monitor market developments closely.