US Tariff Clash Sparks Market Turbulence: How Is Bitcoin Responding?

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bearish:

Bitcoin (BTC) continues to defy expectations, showing green on the charts even as global markets shudder under the weight of newly announced US tariffs. With President Donald Trump confirming the enforcement of reciprocal tariffs late tonight (around 11:00 PM EST), investors are bracing for market turbulence. While Bitcoin has surged in the short term, long-term implications remain uncertain.

Trade Tensions Escalate, Global Markets Suffer

The White House confirmed that the tariff measures will take effect immediately following Trump’s announcement. The administration’s aggressive trade stance targets economic heavyweights including China, Canada, Mexico, Russia, and the European Union. Although framed as retaliation for tariffs imposed on American goods, this tit-for-tat strategy is rippling through global markets.

Governments are responding in kind. Mexico’s President Claudia Sheinbaum stated that countermeasures would be announced tomorrow, underscoring the rapid escalation of the trade conflict. As a result, traditional markets are sliding: the S&P 500 has dropped over 2% in the last five trading sessions, with similar trends in the Nasdaq Composite and Dow Jones indices.

With increasing correlation between equity markets and digital assets, Bitcoin’s resilience amid this chaos is being closely watched.

Bitcoin Price Remains Resilient—For Now

Despite market headwinds, Bitcoin is currently trading at $85,186.47, marking a 3.44% gain over the past 24 hours. However, it is still down 2.79% over the week. Interestingly, Bitcoin hit an all-time high of $109,114 on January 20—coinciding with the start of Trump’s term—only to drop over 20% in the following weeks.

Rising inflation concerns fueled by the trade conflict may prompt the Federal Reserve to revise its interest rate policy. A dovish pivot could lead to increased liquidity, potentially driving more capital into Bitcoin as a hedge against fiat volatility.

US Tariff Clash Sparks Market Turbulence: How Is Bitcoin Responding? = The Bit Journal

Key Factors to Watch for Bitcoin’s Next Move

While April has started strong for Bitcoin, ongoing trade uncertainties could trigger renewed volatility. Nonetheless, several long-term signals remain bullish.

Institutional demand for BTC continues to rise, and whispers of strategic reserves by government entities are feeding speculation about Bitcoin’s future role in national treasuries. These dynamics support a favorable supply-demand balance that could cushion Bitcoin against broader market risks.

Experts cited by The Bit Journal suggest that current price levels may represent a buying opportunity. Despite short-term uncertainty, sentiment among seasoned investors remains optimistic.

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