Recent statements by Donald Trump regarding the imposition of tariffs could significantly impact the cryptocurrency market. Let's examine how this will affect Bitcoin and other assets.
Trump's New Tariff Announcement
Donald Trump announced plans to impose retaliatory tariffs against multiple countries, leading to a wave of concern and a knee-jerk reaction in the markets. This has resulted in declines in Bitcoin, stocks, and currencies. Investors fear a repeat of the scenario when tariffs were previously imposed, leading to a significant market pullback.
Current Market Trends
There are many signs that Bitcoin could face further downside risk. Its price recently retested its short-term declining trend line and encountered selling pressure. Amidst the crisis, trust in leverage has dwindled, also reflecting in market sentiments. At the same time, there is a reduced buying appetite in the spot market, indicating a dominance of selling pressure.
Strategic Reserve: Bitcoin in States
Efforts continue to recognize Bitcoin as a reserve asset at the state level. Recently, Maryland became the 17th state to introduce a bill advocating for Bitcoin's strategic reserve status. This demonstrates a changing sentiment towards cryptocurrencies at the governmental level, serving as a positive signal for Bitcoin's long-term prospects.
While the short-term outlook for Bitcoin seems challenging, long-term regulatory changes and recognition of Bitcoin as a reserve asset instill confidence in its future potential.
