Bitcoin’s price recovery hit a new roadblock yesterday as the asset was pushed back from the critical $80,000 level, declining by $5,000 following the implementation of significant tariffs by former President Trump against China. This development has not only created hurdles for Bitcoin but has also led to a downturn in various altcoins.
The cryptocurrency landscape is experiencing heightened volatility fueled by the aggressive macroeconomic policies from the United States. Just a week prior, Bitcoin surged to over $88,000 on the heels of speculation regarding changes in influential relationships within Silicon Valley. However, this bullish momentum was short-lived.
As news surfaced about the tariffs—set at a minimum of 10% for all nations, with even higher rates for countries like China and those in the European Union—Bitcoin’s price quickly faltered. After attempting to maintain a support level around $81,000, it ultimately broke down, plunging to a five-month low of approximately $74,000 by the following Monday.
Although Bitcoin managed to bounce back momentarily and approached the $80,000 mark again, the renewed intensity of Trump’s tariffs, now at an astonishing 104%, led to further downward pressure. Currently, Bitcoin trades around $77,000, with a market capitalization of $1.530 trillion, maintaining a dominance of over 60% in the cryptocurrency market.
Altcoins Struggle as Market Turns Red
The promising relief rallies observed yesterday have swiftly reversed, as most altcoins succumb to fresh selling pressures. Ethereum, in particular, has taken a hit, with losses exceeding 5% today. It recently plummeted to a multi-year low, erasing seven years’ worth of gains in the process.
The current market overview indicates that most major altcoins are in the red, with BNB and LEO being notable exceptions. Even XRP, which had been buoyed by recent announcements, has lost traction, while UNI and NEAR are facing more severe declines.
Other mid-cap coins such as PEPE and HYPE have managed to stay slightly positive today, contrasting with the losses seen in others like XMR and SHIB. Overall, the cryptocurrency market has witnessed a staggering $70 billion evaporate, with the total market capitalization now resting at $2.540 trillion.
As we navigate through these turbulent times, the implications of macroeconomic policies on the cryptocurrency sector cannot be overstated. Investors and enthusiasts alike will need to stay alert as market conditions continue to evolve rapidly.
