Was Trump’s Revised Tariff The Sole Cause Behind BTC Price Drop?

The weekend was rough for the crypto enthusiasts. After the bombastic announcement of Donald Trump revising the overall tariff for countries like China, Canada, and Mexico, the trading market went through some major upheaval. 

BTC was already showing bearish movement for the last couple of days. This news was a strong catalyst, and BTC fell around 8% in three consecutive days. Next to take the hit was Ether. Currently, Ether is slumping at its all-time lowest at 20%. 

Therefore, it is safe to say that Trump did play a crucial role in the grand scheme of things.

Immediate Impact Of Tariff Updation 

BTC was at a rising wave before Saturday. However, when Trump released a statement regarding the tariff change, things cascaded into chaos. BTC’s bullish rise came to a halt and was replaced by a bearish trend.

This dip in the valuation has made the crypto community nervous about the impending trade war. As a result, more and more tech-based companies have decided to shed weight and streamline their operation. Which can prove detrimental in the long run.

Other Factors That Might Have Catalyzed The Dip 

There is no denying that Trump’s decision has destabilized the crypto market. However, it would be wrong to attribute him and his cabinet to be the sole responsible element for this destabilization. Other factors played an equal part in the whole deal. Here are some more factors that led to an 8% fall in BTC in the last few days:

Investor Reaction

BTC was at an all-time high, breaking the $100,000. As a result, many investors decided to liquidate their assets. This created an overabundance of BTC in the market. Hence, this creates a negative disparity between supply and demand.

Market Sentiment 

The news of falling prices and a possible trade war has created a sense of panic amongst crypto traders. The said panic affected the market sentiment. In other words, as prices dropped, more and more investorstarted getting on the bandwagon. This resulted in more liquidation and overabundance of BTC in the market.

Technical Signals 

Analysts believe the continued fall of BTC price below the $90,000 mark can trigger mass-scale selling. This event could lower the price and saturate the market with enough BTC. As a result, this can prove catastrophic in the long run.

The Final Thought: How To Cover Your Losses 

One small decision of Trump has pressed the pause button on the economic world. This shows the volatility of the landscape. Therefore, it is important to understand some means to minimize losses.

One important means of minimizing losses is to diversify. To invest in multiple assets across different platforms. This can help you in the long run. Therefore, I understand the importance of this and keep a keen eye on the market movement.