Cryptocurrency prices have taken a hit across the board, with Bitcoin falling below $77,000 as investors react to President Donald Trump's tariff strategies and the Bitcoin reserve initiative.
In the early hours of Tuesday, March 11, Bitcoin dipped to $76,000, a low not seen since last September. Crypto trader Ali shared on X:
“If #Bitcoin $BTC holds at $80,000, the bullish outlook remains intact. However, breaching this level could set the stage for $69,000 as the next major support!”
As of this publication, Bitcoin has slightly rebounded and is trading around $81,600, according to CoinMarketCap. In contrast, Ether is down over 9% in the last 24 hours, trading at $1,920, while XRP has fallen more than 2% to $2.13, and Dogecoin has dropped by 8.81% to $0.1607.
The continued sell-off in the market coincides with investors reacting to Trump’s trade tariffs, the announcement of the US Strategic Bitcoin Reserve, and growing recession fears.
In the wake of Trump’s statements, the US stock market saw a decline of over $1.7 trillion yesterday. Tesla, led by Elon Musk, witnessed its shares plummet by at least 15% to $222, diminishing over half of its value from its December high of $479.86. Musk reassured on X that “it will be fine long-term.”
The unfavorable market conditions have been exacerbated by Trump’s trade tariffs on Canada, China, and Mexico. Last month, it was confirmed that a 25% tariff would be imposed on Canada and Mexico, though its implementation has been delayed until April 2. Additionally, China has had a 20% tariff imposed on its goods.
Arthur Hayes, co-founder of BitMEX, took to X, urging people to remain “patient.” He mentioned that “$BTC is likely to bottom around $70k. A 36% correction from the all-time high of $110k is quite typical for a bull market,” adding:
“Traders might attempt to buy the dip; if you're more risk-averse, it might be wise to wait for the central banks to ease before investing more capital. You may miss the bottom, but you also won't have to endure a prolonged period of sideways price action and potential unrealized losses.”
The article Bitcoin drops to $76k after Trump fails to rule out a recession originally appeared on CoinJournal.
The cryptocurrency market experienced significant declines recently, highlighted by Bitcoin falling below $77,000. As of March 11, the price of Bitcoin hit a low of $76,000, a level not seen since the previous September. This decline occurred amid investor reactions to comments made by U.S. President Donald Trump regarding potential recession risks and tariff policies, which have contributed to increased market volatility. Notably, Bitcoin has recovered slightly and is now priced around $81,600.
In conjunction with Bitcoin's decline, other cryptocurrencies were also heavily impacted. Ether fell by over 9% in 24 hours, dropping to $1,920, while XRP experienced a more modest decline of 2% to $2.13. Dogecoin fared worse, losing more than 8.81%, bringing its value down to $0.1607.
The broader impact of Trump’s comments extended beyond cryptocurrencies. The U.S. stock market suffered a drastic loss of over $1.7 trillion in value, reinforcing concerns about the stability of financial markets. Tesla, led by prominent entrepreneur Elon Musk, saw its stock plummet by at least 15%, with shares falling to $222—marking a drop of more than 50% from its peak of $479.86 in December. Musk attempted to reassure investors on social media, asserting that "it will be fine long-term."
A critical factor in this market turmoil is Trump’s imposition of trade tariffs. It was reported that Trump has enforced a 25% tariff on goods from Canada and Mexico, although implementation has been postponed until April 2. Additionally, a 20% tariff has been placed on China, further straining trade relations and investor sentiment.
In the wake of these developments, industry figures are advising caution and patience among traders. BitMEX co-founder Arthur Hayes suggested on social media that the Bitcoin price could settle near $70,000, representing a standard correction of 36% from an all-time high of $110,000. He emphasized that while traders may see opportunities to buy during this dip, those who are risk-averse might consider waiting for a more favorable market environment, potentially when central banks signal a more accommodative monetary policy.
The market's overall reaction to Trump's statements emphasizes heightened sensitivity to economic indicators and government policy changes that could signal recession risks. This, coupled with strategic decisions regarding tariffs and trade, is significantly influencing investor behavior and market valuation, leading to uncertainty and volatility in both crypto and stock markets.
In summary, recent market trends have shown a sharp decline across major cryptocurrencies, led by Bitcoin's drop to lower levels not seen in months. Significant stock market losses have been correlated with Trump's comments on tariffs and recession risks, prompting recommendations for cautious trading strategies as the dynamics of the market shift in response to ongoing economic pressures.
Please share by clicking this button!
Visit our site and see all other available articles!