Bitcoin has dropped below $85,000 after President Donald Trump announced new tariffs on imports from the European Union. This has led to significant declines for both Bitcoin and the broader cryptocurrency market.
Market Reaction to Tariffs
During his first cabinet meeting, Donald Trump reiterated his intention to impose a 25% tariff on goods from the European Union, impacting financial markets, including the crypto sector.
Impact on the Crypto Industry
Bitcoin has fallen 4% in the last 24 hours, trading at $84,600 levels. According to CoinGecko, the total cryptocurrency market cap has shrunk 4%, adding to the $1.5 billion wiped out on February 25. Coinglass data indicates total liquidations have surpassed $765 million in the past 24 hours.
Overall Market Consequences
SoSoValue data shows that on February 25, the market saw the biggest one-day outflow from Bitcoin ETFs since their inception, with $937.78 million exiting. Since Trump took office in January, Bitcoin has dropped around 20% from its peak of $109,225. Hopes for pro-crypto regulations are waning as aggressive trade policies take precedence.
While some analysts view the correction as a 'healthy' reset, others caution that a drop below $80,000 could trigger another wave of liquidations, pushing Bitcoin to $70,000. Meanwhile, traders exercise caution amid rising macroeconomic uncertainty and potential regulatory changes.
