Hassan Maishera
TL;DR
-
On Wednesday, BTC’s price briefly crashed to $82k, losing over 5% of its value.
-
Cryptocurrencies and stocks underperformed after Trump unveiled plans to impose tariffs on E.U.
BTC Crashes to $82k on Trump Tariff Talks
The cryptocurrency market has been bearish since the start of the week, and attempts to reverse the market conditions were quickly snuffed out on Wednesday. Bitcoin, the leading cryptocurrency by market cap, dropped below the $83k level on Wednesday following Trump’s first cabinet meeting since he assumed office.
BTC’s price crashed to the $82,160 region on Wednesday after U.S. President Donald Trump said he plans to impose a 25% tariff on the European Union. Trump stated that,
“We have made a decision, and we’ll be announcing it very soon. It’ll be 25 percent.”
The announcement negatively affected other financial markets, with the S&P 500 falling to its session low.
Bitcoin is slowly recovering from the shock and now trades at $86,282 per coin. Bitcoin’s poor performance has seen some analysts call for a dip to the $70k region. In an email to Cryptowisser, Ruslan Lienkha, Chief of Markets, YouHodler, said the next target for Bitcoin could be $70k. He stated that,
“According to technical analysis, the next target for Bitcoin's price is around the $70,000 level, which serves as a strong support zone. However, we will only see this level if negative sentiment dominates the equity markets. U.S. stock indices have been in the red for several consecutive days, but it is still too early to conclude that the broader uptrend has ended—it could simply be a market correction.”
Ether, the second-largest cryptocurrency by market cap, continues to underperform. It is down nearly 6% in the last 24 hours and could drop below $2,300 soon if the bearish trend continues. XRP and Cardano’s ADA are down 3%, while BNB maintains its value above $615.
Regarding Ether’s recent downtrend, Lienkha pointed out that,
“Ethereum's recent decline is primarily driven by broader market sentiment. Bitcoin also experienced a nearly 10% drop over the past two days, reinforcing that this is part of a broader risk-off movement. However, the recent security breach involving stolen ETH could contribute to additional selling pressure, as the stolen funds are likely being liquidated rather than held. While this may temporarily impact price action, it does not indicate a structural weakness in Ethereum itself.”
The total cryptocurrency market cap has dropped below $2.9 trillion as the selloff continues.
