Global Trade Uncertainty: Bitcoin Price Falls Amid Trump’s Tariff Imposition
Introduction
The price of Bitcoin fell below $77,000 on Tuesday as investors waited for the steepest levies included in U.S. President Donald Trump’s trade war to go into effect. The White House has imposed a 10% baseline tariff on all U.S. imports, while individualized, “reciprocal” rates for dozens of countries are set to be implemented at midnight Eastern Time.
Background on Trump’s Tariffs
The White House has already imposed a 10% baseline tariff on all U.S. imports, following Trump’s “Liberation Day” announcement last week. This move is part of the president’s effort to address the trade deficit and create a more level playing field for American businesses.
Impact on Global Markets
The implementation of Trump’s tariffs has had a significant impact on global markets. The price of Bitcoin fell as low as $74,700 on Monday, according to the crypto data provider CoinGecko. The largest cryptocurrency by market cap was recently changing hands around $76,500, a roughly 2% drop over the past 24 hours after rising over $80,000 earlier Tuesday.
Reaction from Cryptocurrency Market
The reaction in the Bitcoin market has been mild compared to previous broad market sell-offs, according to David Lawant, head of research at the crypto market maker FalconX. He noted that “we may be in for a period of sideways chop or even further deterioration.”
International Reaction
Countries including Canada are poised to push through countermeasures of their own. Canadian Prime Minister Mark Carney said that 25% tariffs on certain vehicles would take effect at midnight. “President Trump caused this trade crisis — and Canada is responding with purpose and with force,” Carney added.
Conclusion
The implementation of Trump’s tariffs has sent shockwaves through global markets, with the price of Bitcoin falling below $77,000. As the trade war continues to unfold, investors will be closely watching the impact on global markets and the potential for further volatility.
FAQs
Q: What are the tariffs imposed by the White House?
A: The White House has imposed a 10% baseline tariff on all U.S. imports, while individualized, “reciprocal” rates for dozens of countries are set to be implemented at midnight Eastern Time.
Q: How has the price of Bitcoin been affected by the tariffs?
A: The price of Bitcoin fell as low as $74,700 on Monday, according to the crypto data provider CoinGecko. The largest cryptocurrency by market cap was recently changing hands around $76,500, a roughly 2% drop over the past 24 hours after rising over $80,000 earlier Tuesday.
Q: What is the reaction from the cryptocurrency market?
A: The reaction in the Bitcoin market has been mild compared to previous broad market sell-offs, according to David Lawant, head of research at the crypto market maker FalconX.
Q: How are other countries reacting to the tariffs?
A: Countries including Canada are poised to push through countermeasures of their own. Canadian Prime Minister Mark Carney said that 25% tariffs on certain vehicles would take effect at midnight.
