Bitcoin Price Slips Over 2% Amid Global Trade Confusion

The Bitcoin price took a noticeable dip this Sunday, falling more than 2% during Asia trading hours. It dropped to around $83,482, giving back some of the gains made last week. While equity markets showed some strength, digital assets like Bitcoin struggled to hold their ground. Ethereum also fell, slipping below the $1,600 mark, and other altcoins showed a mixed performance.

This drop came at a time when traders were hopeful. Just last week, optimism was building with signs that inflation might be cooling down. But over the weekend, that calm turned into uncertainty.

Confusing Trade Messages From Washington

At the heart of this volatility is confusion coming out of Washington. The Trump administration has sent out mixed signals regarding new tariffs on Chinese-made electronics like laptops, smartphones, and semiconductors. At first, it seemed like there might be a temporary pause on these new trade penalties.

However, late Sunday, former President Trump clarified things in a fiery Truth Social post. He stated that while some products might be temporarily excluded from a 10% tariff, they would still be hit with a separate 20% levy tied to national security concerns and fentanyl enforcement. In his words, “NOBODY is getting ‘off the hook. ’”

Stocks Hold Up, But Crypto Stumbles

While all this was unfolding, equity markets didn’t react much. In fact, Nasdaq 100 futures rose over 1%, and the S&P 500 gained 0.7%. But Bitcoin’s price and other cryptocurrencies didn’t share the same luck. The crypto market, on the other hand, felt the impact of uncertainty much faster.

Fed Rate Cuts? Not So Fast

Another reason for the pressure on Bitcoin is the shifting expectations about interest rates. Just a few days ago, traders were hopeful that the U.S. Federal Reserve might announce an emergency rate cut at the upcoming May or June meeting. But with inflationary pressure likely to rise due to tariffs, that possibility is now fading.

Analyst Darren Chu noted that the tariffs from the Trump administration could lead the Fed to keep interest rates higher for longer. This “hawkish” stance makes risky assets like Bitcoin less attractive, at least for now.

Eyes on the $81,000 Support Level

As the market processes all this news, many analysts are watching one level closely: $81,000. If the Bitcoin price drops below this, it could trigger a wave of liquidations, especially among leveraged positions. That means traders using borrowed money could be forced to sell, putting even more pressure on the already shaky crypto market.

For now, Bitcoin is in a wait-and-watch zone. Investors will be keeping an eye on both political developments and central bank signals to figure out what’s next.

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