Bitcoin Drops 10% Amid Trump's Tariff Policy

Bitcoin (BTC) has experienced a 10% decline year-to-date, indicating a notable decrease in market risk appetite. This downturn coincides with the impending implementation of a new tariff policy by former U.S. President Donald Trump, scheduled to take effect at 4:00 AM on April 3rd (Beijing time). The policy is expected to significantly impact global trade dynamics, with plans to double tariffs on major Asian countries and potentially impose a uniform 20% tariff on global commodities.

According to Bitunix analysts, the market risk sentiment is on the rise due to Trump's new tariff policy, which is putting pressure on U.S. stocks. The focus is now on whether cryptocurrencies can demonstrate their safe-haven value. Bitcoin is currently focusing on its long-term support levels, with the immediate support at $78,000. A break below this level could test the next support at $75,000. For short-term traders, caution is advised as they monitor changes in market risk sentiment and look for opportunities to buy low and break out.

The U.S. ISM Manufacturing PMI has also contracted, hitting a new low since May 2023. This contraction adds to the overall market uncertainty and could further influence the volatility of Bitcoin and other cryptocurrencies. The market continues to fluctuate as investors assess the potential impact of the new tariff policy and the broader economic indicators.