Bitcoin's price plummeted to $97,000, reflecting the broader global market decline. Both stock and cryptocurrency markets are under pressure following the latest US trade tariff announcements.
Impact of Tariffs on Markets
Traders are scrambling to cover positions following US President Donald Trump's announcement of 10% tariffs on China and 25% tariffs each for Mexico and Canada, causing significant market corrections, especially in Bitcoin.
Changes in Derivatives Markets
Derivatives markets have been hit hard with Bitcoin derivatives trading volume spiking over 100%. Open interest dropped by 1.49%, indicating traders are closing positions fearing further losses.
Technical Analysis: Bearish Trends
Technical indicators show waning buyer interest. The MACD has turned negative, and the RSI approaches oversold levels, indicating bearish market sentiment with lower highs and lows prominent on the chart.
The financial turndown and tariff decisions significantly impacted Bitcoin's price. Fears of further declines persist, despite hopes for a recovery near the $97,000 support level.
