Shocking price falls for Bitcoin and Ethereum: Effect of Trump’s Tariff Threat?

President Donald Trump’s tariff bombshell retaliated. Bitcoin took the worst hit. The popular US crypto is nose-driving towards $90,000. Ethereum follows.  

New US tariffs were updated last Monday. Trade concerns followed immediately worldwide. Bitcoin and Ethereum prices fell on the nose.  

Shockingly, Bitcoin experienced a 3-week low of $91,441.89. Ethereum, having lost 24%, is on the same trail. The second most popular crypto now trades in the US at $2,494.33.  

The reaction avalanche after tariffs sparked  

Over the long weekend, Donald Trump announced a 25% tariff increase on imports from Canada and Mexico. However, news of another 10% tariff increases on Chinese goods also came in shortly.  

The net worth of the US trading with these three countries is $1.6 trillion, with the majority partner being China.  

Susceptible investor sentiments  

In reaction to this Trump gunfire, the market response was worth perceiving. Pepperstone spokesperson Chris Weston says that:  

“Crypto research too risky proxy”  

Bitcoin on life support  

In the last 24 hours, Bitcoin prices dropped 3.89%. Since early September this is the worst fall, the flagship cryptocurrency has experienced.  

However, the investor market is not meek-hearted. There are high hopes that the path to recovery will not be far away.  

What makes investors feel so is Bitcoin’s empirical nature of bouncing off life support to consolidation. If projections were to be true, Bitcoin could revive to a price point of $106,000.  

What’s plan B if failure strikes?  

If Bitcoin and Ethereum fail to hold forts, it means trouble for BTC bulls. The current range is the threshold according to experts. A further dip would mean prices would be trailing towards a 200-day EMA.  

At this point, the projected price of Bitcoin could be $83,026. However, a strong relative strength index of 36.74 implies that BTC is witnessing an almost oversold status. But there is a catch.  

This plan B woodwork considering market sentiments does not weaken any further.  

Ethereum is slightly better off.  

ETH is the breaking news in the crypto world now. The popular flagship crypto platform is testing the anticipated .236 Fibonacci retracement level.  

If it works, Ethereum’s price point could be $2,609. Already buyers are stepping in and crypto shows enigmatic signs of being bullish again.  

Ethereum could also close above $2609 if the current price trend holds. In the last one hour, the highest price fall observed was 18%. Hence, the market is still volatile beyond doubt.  

A dip is also anticipated.  

If the price stays above $2620 at least, there’s high hope that it will reach around the 0.382 Fib line at $2692.  

The only thing that could be in its way is the sell-off trend. If this strength does not stop soon, ETH will fail to hold above $2150. That means we could expect a steeper drop to $2000 or worse $1750.