Ah, the world of Bitcoin and Trump’s trade shenanigans – a thrilling rollercoaster ride, ain’t it?
- Trump’s “Make in America” campaign marches on, with 25% import taxes on key metals now in play.
- Will Bitcoin weather this storm, or are we in for another crypto market nosedive?
The crypto market took a 12.19% hit in February, and Bitcoin ain’t no exception. The recent tariffs drove Bitcoin down to nearly $92K. Now, Trump’s new 25% tariffs on steel and aluminum? Well, that’s just adding fuel to the fire.
With Trump’s “America First” strategy hogging the limelight, will investors hold steady for a rebound, or is this the beginning of a 2018-style crash that saw Bitcoin plummet by double digits?
Hold on to your hats, partners!
Two months into 2025, and Bitcoin’s already seen two sharp drops, each slicing over 10% of its value and bringing it down from six figures to five.
The latest drop followed Trump’s high-stakes tariffs, causing a spike in BTC deposits across all exchanges – over 70K in a single day, the highest this year.
With uncertainty around rate cuts, investors are getting jittery, pulling back on risky trades. And with a 25% import tax on steel and aluminum, the Fed’s 2% inflation target? That’s slipping further away than a gambler’s lucky streak.
In the short term, Bitcoin’s found support between $88K and $90K, drawing both institutional and retail buyers. But with so many moving parts, is the real BTC bottom still far out of reach?
Back in 2018, when Trump imposed a 10% import tax on Chinese goods, Bitcoin crashed 72% by year-end. While a similar tumble ain’t expected, the impact of tariffs on the crypto market can’t be ignored.
With the Fed hesitant on rate cuts, investor greed hanging by a thread, and Bitcoin’s usually bullish Q1 failing to ignite FOMO, 2025 is shaping up to be a year when patience will be tested like never before.
So, are traders still all-in on the Bitcoin-Trump duo?
Given the macro trends, expecting fresh capital to flood the market might be a mite premature. As short-term holders (STHs) cash out after each dip, a strong HODL mindset may be the best strategy for now.
This dynamic is why Bitcoin’s stuck in this holding pattern – while HODLers and ETFs keep BTC above its local bottom, STHs are quick to bail, and futures traders have closed over $8 billion in positions in just ten days.
But how long can Bitcoin stay in this cycle? Investors still have faith in the Bitcoin-Trump duo, but confidence is being tested with each high-stakes trade policy.
The question remains: If this balance breaks, will Bitcoin’s true bottom be far, far away? The answer lies in how the administration handles the
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2025-02-10 13:15