The recent announcement of retaliatory tariffs by the European Union has introduced new layers of uncertainty in the macroeconomic landscape, particularly concerning Bitcoin’s price stability. Analysts are now forecasting an uptick in volatility, suggesting that Bitcoin could potentially test the critical support level of $75,000 in the near future.
Starting in April, the EU plans to impose counter-tariffs on €26 billion ($28 billion) worth of U.S. goods, responding to the U.S. government’s recent 25% tariffs on steel and aluminum imports. This counteraction marks yet another chapter in the ongoing tension surrounding trade relations, with experts warning that it could reignite trade war concerns and further influence market volatility.
Source: European Commission
Co-founder of RedStone, Marcin Kazmierczak, remarked that the introduction of counter-tariffs does not bode well for market sentiment, as they imply potential retaliatory measures from the U.S. He indicated that these developments could prompt Bitcoin (BTC) to test the $75,000 mark, although he remains optimistic about its resilience, given the ongoing demand for stablecoins and real-world assets at all-time highs.
While Kazmierczak downplays the immediate impact of these tariffs, he emphasizes the importance of observing market reactions to U.S. responses. Other analysts, however, foresee a possible temporary pullback, predicting that Bitcoin might dip below $72,000 as part of the natural macro correction within the current bull market cycle.
Ryan Lee, chief analyst at Bitget Research, elucidates that although Bitcoin’s prices are influenced by broader economic conditions and trade policies, factors such as institutional adoption and regulatory developments also play a crucial role in its resilience compared to traditional financial instruments.
With the EU set to fully implement its new tariffs by April 13, concerns over tariff-related disruptions will likely cap market risk appetite until early April. Aurelie Barthere, principal research analyst at Nansen, noted that the noise surrounding tariffs could linger, affecting both traditional and cryptocurrency markets. Nevertheless, some signs of stabilization in major U.S. equity indices and Bitcoin have been observed, which analysts are closely monitoring.
This geopolitical uncertainty underscores the intricate relationships between trade policies and cryptocurrency markets. As the situation evolves, stakeholders will need to keep a vigilant eye on both domestic and international developments to navigate the challenging landscape ahead.
