Bitcoin and the broader cryptocurrency market faced severe downward pressure today as Trump’s sweeping new tariff announcements sent shockwaves through global financial markets. The leading cryptocurrency plummeted 8% to $77,300, while Ethereum suffered an even steeper 14% decline.
Market Impact of Trump’s Tariff Announcement
Billionaire investor and Trump ally Bill Ackman has called for a 90-day pause on the implementation of new US tariffs as markets reel from the announcement. The proposed pause aims to give businesses and markets time to adjust to the dramatic policy shift.
Key Price Levels to Watch
Bitcoin’s critical support level at $81,000 was decisively broken during today’s selloff, opening the door for further downside. Technical analysts are now watching the $75,000 level as the next major support zone.
Broader Market Implications
The crypto market’s reaction mirrors broader financial market concerns, with liquidations reaching $900 million as traders rush to reduce risk exposure.
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Expert Analysis
Market analysts suggest this correction could present a buying opportunity for long-term investors, though short-term volatility is expected to persist as markets digest the implications of the new tariff policies.
FAQ
How long could this market downturn last?
Analysts expect volatility to continue until there’s more clarity on the implementation of the new tariffs.
What are the key support levels to watch?
After breaking $81,000, the next major support levels are at $75,000 and $72,000.
How does this compare to previous market corrections?
This correction is notably different as it’s driven by macro policy changes rather than crypto-specific factors.