Trump’s Tariff Retaliation Rattles Markets – Will Bitcoin Drop?

By / / Crypto News, Daily News
Trump’s Tariff Retaliation Rattles Markets – Will Bitcoin Drop?
Table Of Contents
  1. Trump Threatens Stronger Tariffs on Canada – What’s Next for Bitcoin?
  2. Trump Warns Canada: More Tariffs Are Coming
  3. Will Bitcoin Face Another Drop?
  4. Conclusion

Trump Threatens Stronger Tariffs on Canada – What’s Next for Bitcoin?

Trade tensions are escalating as former U.S. President Donald Trump signals tougher tariffs on Canada. With Mexico possibly following suit and China already imposing higher tariffs on U.S. farm products, global markets are facing increased volatility.

Amid the tariff war, Bitcoin dipped below $82,000 before recovering to $88,313, though it remains down 8% over the past month. While Trump’s endorsement of a U.S. crypto reserve momentarily drove Bitcoin to $95,000, resistance at $94,000 has kept the cryptocurrency’s future uncertain.

Despite these fluctuations, the economy shows signs of resilience. The Purchasing Managers Index (PMI) has stayed above 50 for two consecutive months, indicating growth. Some analysts predict Bitcoin could reach new highs by late 2025 or early 2026 if economic conditions remain favorable.

Trump Warns Canada: More Tariffs Are Coming

Trump has issued a stern warning to Canada, stating that any counter-tariffs will be met with even stronger measures from the U.S. In a post on X, he reaffirmed his stance, making it clear that he will not back down in this trade dispute.

In retaliation, Canada has announced a 25% tariff on $20.5 billion worth of U.S. goods. Prime Minister Justin Trudeau condemned Trump’s policies, calling them unfair and vowing to protect Canadian businesses. “We will do whatever it takes,” Trudeau stated in a televised address.

Mexico is also expected to announce trade penalties in the coming days. Meanwhile, China has already raised tariffs on U.S. agricultural products, intensifying concerns over the future of global trade.

Will Bitcoin Face Another Drop?

Bitcoin’s recent price swings highlight investor uncertainty amid ongoing trade disputes. Several factors could contribute to another downturn for the leading cryptocurrency:

  1. Escalating Trade Wars: The ongoing1 tariff battles between the U.S., Canada, Mexico, and China create instability in financial markets. Historically, such uncertainty has driven investors away from volatile assets like Bitcoin.
  2. Strong Resistance Levels: Bitcoin recently attempted to break past $94,000 but faced significant selling pressure. If it fails to surpass this level, another decline could be imminent.
  3. Federal Reserve Policy: The U.S. Federal Reserve’s upcoming decision on interest rates could impact Bitcoin’s price. If rates remain high, investors may shift their capital toward safer assets, leading to a potential Bitcoin sell-off.
  4. Economic Indicators: While recent economic reports suggest growth, a slowdown could negatively impact Bitcoin. If the PMI drops below 50 in the coming months, it may signal economic contraction, further pressuring crypto markets.

Conclusion

Bitcoin’s future3 remains uncertain as trade tensions, economic policies, and market volatility weigh on investor sentiment. Resistance at $94,000 and the Federal Reserve’s policy decisions add to the uncertainty. While long-term economic growth could support Bitcoin, short-term instability might push prices lower. Investors are cautiously waiting for clearer signals before making significant moves.

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