Bitcoin Dips Below $80K as Trump Tariffs Halt Price Comeback

Bitcoin fell below $80,000, affected by new tariffs announced by Trump, countering its earlier rebound. The S&P 500 also dipped, and market volatility continues. Analysts warn of potential price lows for Bitcoin amid risks and uncertainty.

Bitcoin took a hit today, dipping below the $80,000 mark due to a mix of factors, mainly sparked by fresh tariffs announced by President Trump. After a promising 7% rebound earlier in the day, Bitcoin cooled off as market blues set in. It had reached a local high of $82,154 on Bitstamp before settling, a familiar story of ups and downs for BTC holders.

When the U.S. job openings data came in just a bit stronger than expected, it briefly lifted spirits. However, the news that the U.S. was placing further tariffs on Canadian imports certainly dulled the mood. This blow to risk assets wasn’t what investors were hoping for, as the S&P 500 ended the day trading down about 0.5%. A rollercoaster of volatility seems to continue for stock indices as well.

In a critical commentary, The Kobeissi Letter pointed out a stark contrast to how the S&P 500 was performing at this time during Trump’s first term—it was up 5% then but now stands at a 7% loss since January 20th. The atmosphere feels rather heavy, with analysts observing a shift in sentiment.

On another note, QCP Capital noted that while Trump’s apparent disregard for recession risks was contributing to stress in risk assets, there were a few bright spots to consider. “Despite the market turmoil, not all signals are bearish,” they commented. The downtrend has led to a decline in 10-year Treasury yields and a weakened U.S. dollar, conditions that typically bode well for risk assets like cryptocurrencies.

The dollar index fell to 103.32, the lowest it’s been since mid-October 2024, which paints an interesting backdrop for Bitcoin. As for BTC’s immediate future, analysis suggests it’s at a bit of a crossroads. According to insights derived from Elliott Wave theory, new price lows are still a possibility for Bitcoin, highlighting the uncertainty in the market. Analysts are keeping a close eye on support and resistance levels, with warnings that prices may still be poised for further downtrends if key resistance holds.

Popular trader CrypNuevo has also noted some pivotal reactions around the 50-week simple moving average, currently hovering around $75,500. This trendline has held fairly steady too, not registering a close below it since March 2023.

All this leads to a rather convoluted picture of Bitcoin’s current state—as traders and investors alike are left guessing what comes next.

And just a reminder, this piece isn’t providing financial advice—everyone’s investment journey is personal, and risks are ever-present. It’s crucial to conduct your own research before diving into trading decisions.

In summary, Bitcoin’s recent dip below $80,000 is attributed to newly announced tariffs by President Trump, overshadowing a brief positive bounce. The broader market is experiencing turbulence, highlighted by a decline in the S&P 500 and a falling U.S. dollar. Analysts caution that while some indicators may suggest a recovery could be on the horizon, fresh price lows for Bitcoin still remain a real possibility, keeping traders on high alert for market shifts.

Original Source: cointelegraph.com