According to market data, the price of Bitcoin (BTC) has dropped over 8% in the past 24 hours, reaching around $79,000, its lowest annual level. Ethereum (ETH) has also fallen to $2,100, experiencing an 11% decrease. The main reason for the price drop is concerns over new tariffs by Trump’s government. The uncertainty surrounding import tariffs imposed on Canada and Mexico, along with a further 10% increase in tariffs on China, has put global markets under pressure, contributing to the downward trend of digital currencies. Large financial institutions exiting the Bitcoin market have intensified selling pressure. Bitcoin Exchange-Traded Funds (ETFs) in the US have witnessed unprecedented capital outflows, negatively impacting prices. Additionally, Bitcoin’s high correlation with the S&P 500 index has further weakened BTC due to overall market weakness. The Fear and Greed index has reached a level of 10, indicating extreme fear. Such fear has not been seen since the collapse of Luna and Three Arrows Capital in 2022. Furthermore, Bitcoin option contracts on the Chicago exchange dropped by 5% in the past day, with trading volume in this category plummeting by 50%, signaling investor uncertainty. Despite Trump’s efforts to support cryptocurrency policies and reforms in US regulatory laws, the uncertain economic situation continues to hinder market recovery. Analysts believe that economic stability in the US is crucial for restoring confidence in financial markets.
