Bitcoin Plunges Below $78K Amid Trump’s Global Tariffs, Shaking Crypto Market Confidence
Bitcoin has fallen sharply by over 10% to below $78,000 after the recent imposition by President Donald Trump of comprehensive worldwide tariffs. This is a steep decline from its record high of close to $110,000 achieved on January's second inauguration day.
The cryptocurrency community welcomed President Trump as a powerful supporter at the beginning, christening him 'the first bitcoin president' because of his crypto-friendly position. During his tenure, his government hired regulators sympathetic towards digital assets and even signed an executive order calling for a federal reserve of bitcoins to be created. He also directly participated in the crypto market by launching his own meme coin targeting his supporters.
But the imposition of global tariffs has created economic uncertainties that are affecting digital currencies. The recent decline in the value of bitcoin demonstrates its vulnerability to general market forces that undermine its status as a safe long-term asset. Many investors are treating bitcoin in the same vein as speculative technology equities, as something to dispose of during market volatility.
The crypto venture capitalist Haseeb Qureshi spoke on the matter, saying that optimism and risk appetite primarily drive the cryptocurrency market. He has noticed that this optimism is declining given the economic environment at the moment.
Although President Trump's embrace of the crypto sector at first raised hopes of a U.S. hub for digital assets, the unintended effects on his trade policies are currently undermining that vision. Those investors who advocated for Trump's crypto-supportive policies at one time are reassessing their stances as market sentiment fades with the overall economic effect of the tariffs.
