Bitcoin (BTC) price is surprisingly trading in the green as the broader financial landscape gears up for the implementation of President Donald Trump’s reciprocal tariffs. Despite the current rally, it remains unknown how the BTC price will react to the tariffs in the long term. Bitcoin is known to exhibit short-term reversal to macroeconomic uncertainties, a trend many believe may play out again.
State of the Donald Trump Reciprocal Tariff
One of the most crucial policies in the Donald Trump administration is levying tariffs on key trade partners. While this move is considered a commensurate measure to match what other trade partners are levying on US goods, the aftermath has toppled the market.
Almost all big economies, including Russia have received Tariff threat from the US government. This threat is bound to be matched by the countries involved, including Canada, Mexico, China, and the European Union. With Trump’s tariff kickstarting on April 2, Mexican President Claudia Sheinbaum has revealed that reciprocal measures will be announced on April 3.
This tariff war is poised to offset the mainstream stock market. The signs are already visible in the S&P 500, which has dropped by over 2% in the past five trading days. Similar negative sentiment is seen for the Nasdaq Composite and the Dow Jones. The correlation between Bitcoin price and the mainstream financial market remains a fueling factor behind potential negative shifts in the market moving forward.
Bitcoin Price is Yet to Adjust
As of writing, the price of Bitcoin has rallied 3.44% in 24 hours to $85,186.47, according to CoinMarketCap data. However, the coin’s price has experienced a unique drawdown over the past week, dropping 2.79%.
Since President Trump took office, the price of Bitcoin has experienced a mix of positive and negative sentiments. Amid the positive shifts, the BTC price hit $109,114 ATH on January 20, corresponding with President Trump’s inauguration.
Since the all-time high milestone, Bitcoin price has fallen by over 20% to date. With the trade wars forming a headwind for the coin, more volatility is expected in the short term.
With the trade war and reciprocal tariffs, inflation will soar again, forcing the Federal Reserve to adjust its interest rate policy. Should rates be slashed to boost the monetary landscape, it can set a basis for more BTC adoption, leading to a price surge in the long term.
BTC Price and Key Tailwinds to Watch
While April started positively for the top coin, the month still holds uncertainties per the trade war. However, some important tailwinds are at play that may influence market valuation moving forward.
The US government’s strategic Bitcoin reserve might serve as a basis for more nation-state adoption in the long term. Institutional investors are also betting on BTC, creating a high demand for the coin.
Despite the current volatility, top advocates advise buying now with hopes of a rebound soon.
Godfrey Benjamin
Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture.
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Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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