Bitcoin Dips to $82,000 Amid Trade Tensions Following Trump’s Tariff Announcement
Bitcoin (BTC) experienced a notable decline on Thursday, dropping to around $82,000, a 4% loss, amid heightened global trade tensions following U.S. President Donald Trump’s announcement of extensive tariffs on international trade. The move has sent shockwaves through both traditional and digital asset markets, prompting sell-offs across several cryptocurrencies. Bitcoin, which had been trading at $85,000 prior to the dip, faced similar losses alongside Ethereum (ETH), which fell by 2.96%, and XRP, down 2.21%. Solana (SOL) endured the largest losses, plummeting over 9%.
Trump’s new tariffs, among the most extensive in U.S. history, include a 10% baseline tax on all imports, a 25% tax on foreign-made cars, and reciprocal duties targeting American exports. These measures are set to affect 185 countries, including Nigeria, which will see a 14% tariff on exports to the U.S. This policy is creating significant uncertainty in the global economy, contributing to the volatility in digital asset markets.
As Bitcoin’s value dropped from a recent high of $89,042, it hit a low of $82,141, hovering near its 100-hour Simple Moving Average at $83,500. This price fluctuation underscores the volatility of the market, which has been further exacerbated by broader economic conditions. Bitcoin’s downturn highlights the growing ripple effects of global economic uncertainty, particularly in light of Trump’s trade policies.
On-chain data from Glassnode suggests that Bitcoin’s current market conditions are different from previous cycles, with long-term holders making up a significant portion of Bitcoin’s wealth distribution. Unlike past cycles, short-term holders (STHs) now control only around 40% of Bitcoin’s market share. Technical analysis shows that Bitcoin may face critical resistance at $85,000, with a potential to rise further if it surpasses this level, but failure to do so could lead to additional selling pressure, pushing the cryptocurrency toward lower support levels of $82,200 and $80,000.
Source: Naira metrics