Hassan Maishera
TL;DR
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President Trump announced on Friday that he is going to double tariffs on steel imports from 25% to 50%.
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Bitcoin’s price has dipped nearly 5% in the last seven days and could drop further in the coming days.
President Trump announced at a rally in Pennsylvania on Friday that he is going to double tariffs on steel imports from 25% to 50%. According to Trump, the increase in tariffs will even further secure the steel industry in the United States.
The EU on Saturday stated that Europe was prepared to retaliate against President Donald Trump's plan to double tariffs on imported steel and aluminum. This latest development raised concerns among investors of an escalating trade fight between two of the world's largest economic powers.
Bitcoin, the world’s leading cryptocurrency by market cap, has lost more than 3% of its value since Trump announced the latest tariff on Friday. It was trading above $107k on Friday but has now dropped to $103,700.
Bitcoin’s price dip isn’t a surprise as the cryptocurrency market negatively reacts to tariff news. In April, BTC’s price dropped to the $77k region amid the China-U.S. tariff war. However, BTC rallied to the $100k region after China and the United States agreed to slash tariffs for 90 days.
The latest tariff war between the U.S. and the EU could push Bitcoin’s price below the $100k mark in the short term. The bearish performance could be an opportunity for investors to buy Bitcoin at a discount.
Despite the tariff war between the United States and the EU, analysts remain optimistic about Bitcoin’s medium-term performance. Geoffrey Kendrick, head of digital assets at Standard Chartered, stated that his previous forecast of $120k is too low and Bitcoin could hit the $200k mark before the end of the year.
In addition to these forecasts, institutions such as Michael Saylor’s Strategy and Metaplanet continue to add more bitcoins to their balance sheets, indicating their bullish approach to the market.
Traders can also take advantage of the price decline to enter favorable positions in the market. Using exchanges that offer 500x leverage on popular pairs like BTC, ETH, DOGE, XRP, and SOL, could allow them to make excellent profits in these volatile market conditions.
