Trump’s Tariff Wipe $2.26 Billion from Crypto Market

Recent geopolitical developments, especially former President Donald Trump's announcement of new tariffs, have had a major impact on the price estimate for bitcoin. Bitcoin is currently pricing for about $95,559 as of February 3, 2025, down almost 5% in the last week as a result of market reactions to these tariffs.

The implementation of a 25% tariff by Trump on imports from Canada and Mexico, along with a 10% tariff on Chinese products, has caused a broader panic in the crypto market. This has resulted in a loss of approximately $2.26 billion from the crypto market as investors reacted to potential inflationary pressures and economic uncertainty.

According to analysts, these tariffs could lead to increased inflation, which typically dampens investor sentiment towards riskier assets like crypto.

Despite the current decline, various analysts remain optimistic about the long term prospects of Bitcoin. Analysts expect a potential correction followed by recovery phases later in the year.

Due to external economic pressure stemming from geopolitical actions, the immediate outlook for Bitcoin appears challenging. However, long term estimates suggest that if favorable market conditions and investor confidence return, Bitcoin could still achieve significant price milestones by the end of 2025.

Investors are advised to remain cautious and consider the wider economic context when making investment decisions in this volatile market.

It's me, @justmythoughts, an ordinary Hive user looking to make the most of the platform. I will appreciate your support. Follow me for more. Thanks, Gracias :)

Posted Using INLEO