Bitcoin 
$76,830 prices continue to hit new lows as losses mount. The reasons for this decline are clear and evident. While Trump initially appeared very supportive of cryptocurrencies, his policies have led to disastrous outcomes in the market.
What’s Causing the Cryptocurrency Drop?
Trump announced that a 25% additional tariff on the European Union would soon take effect. Predictions suggest that this extra tariff could be implemented as early as April. Furthermore, there remains a threat of retaliation concerning digital tax policies. Sources from AFP reported that the EU would respond swiftly and firmly to Trump’s recent announcements.
“The EU will respond harshly and immediately to the U.S. tariffs – based on a source from the European Commission,” AFP reports.
This situation has resulted in chaos. The EU is likely to retaliate with similar tariffs, significantly increasing the prices of goods heading to the U.S. Even before these additional tariffs take effect, inflation has already risen due to market expectations. Moreover, Trump is not only declaring war on the EU; he is also proposing hefty fees of up to $1.5 million for Chinese imports, contingent on their docking at U.S. ports.
Initially, Trump seemed to be negotiating from a position of strength. However, the current situation has him acting erratically, aiming to persuade other nations and economic regions to accept his terms. His strategy appears to be pushing competitors to the brink of economic collapse.
As of now, Bitcoin’s daily low stands at $82,500, marking a crucial support level. If this threshold is breached, a further decline to $75,000 could become a real risk. While there may be a recovery when Trump eventually finds a middle ground, the negative impact on inflation and the associated risks to the market will be much harder to rectify.
