Global financial markets experienced sharp fluctuations due to renewed threats from the Donald Trump administration regarding trade tariffs. These events had a notable impact on the cryptocurrency market, particularly Bitcoin.
Return of the Trade War: Market Consequences
The Trump administration reignited fears of a trade war with new tariff proposals applicable to multiple countries, causing panic among investors. These plans propose up to 40% tariffs on Laos and Myanmar, 30% on South Africa, and 25% on Malaysia and Kazakhstan. This negatively affected the cryptocurrency market, especially Bitcoin, which fell below $108,000.
Bitcoin as a Risk Asset: A New Reality
Although Bitcoin was previously seen as 'digital gold,' it is now perceived as a risk asset amid economic uncertainty. In recent days, it has dropped by 0.74% to $107,936.08, and its dynamics have become more correlated with the fluctuations of equity markets.
Key Support Levels for Bitcoin: Expectations and Forecasts
Bitcoin is currently trading near critical support levels. A drop below $107,300 could trigger a sharp decline towards $105,000. However, if the price recovers and surpasses the resistance at $109,500, it may pave the way for a rally towards $112,000.
The outlook for Bitcoin remains uncertain. Strains in trade relations and macroeconomic policy could significantly influence its value. Investors should remain vigilant as the situation may change at any moment.
