After Sunday’s big jump, Bitcoin has again taken another sharp dive. Prices have dropped, and the excitement around a potential US crypto reserve has faded. Instead, traders are paying more attention to something else—Trump’s trade tariffs on Canada and Mexico.
Bitcoin Pulls Back After Brief Excitement
Bitcoin went down and is currently sitting at $84,100, 9.6% in the last 24 hours. Just a day and a half ago, the price had shot back up to $94,000 after Trump announced plans for a national crypto reserve in the US. Many investors saw this as a major step toward more institutional adoption of Bitcoin. Money poured into the market, and prices jumped.
But the excitement didn’t last long. Traders have turned their focus to broader economic concerns, especially the impact of Trump’s upcoming tariffs.
Trade Tariffs Are Shaking Up the Market
For someone who usually supports free markets and less government intervention, Trump is making a big move by using tariffs to control trade. These taxes on goods from Canada and Mexico were set to begin yesterday. Some investors were hoping he would delay them, but that doesn’t seem likely.
It’s not just crypto feeling the pressure. Traditional stock markets also took a hit on Monday. The Dow Jones, S&P 500, and Nasdaq all fell, with investors worried about inflation and how these tariffs will affect the economy. Big tech companies like Nvidia saw their shares drop more than 8.5%, and Bitcoin ETFs saw money flow out as well.
With all this uncertainty, investors are playing it safe, selling riskier assets like Bitcoin and tech stocks.
Short-Term Hype vs. Long-Term Reality
Bitcoin’s price jump on Sunday was fueled by excitement, but the bigger picture matters more. Economic policies, inflation, and trade decisions from governments have a much stronger influence on markets over time.
Crypto remains volatile, and these kinds of corrections are normal. But this latest drop is a reminder that Bitcoin doesn’t exist in a bubble—it reacts to global events, just like stocks and other investments. If Trump changes his stance on tariffs, we could see Bitcoin bounce back, just as we saw in the beginning of February when the trade tariffs were put on hold and Bitcoin rose back above $100,000. Until then, the pullback might not be over.
This Week in Bitcoin
The rest of the week is packed with events that could shake up Bitcoin’s price even more. The Trump administration is hosting a Crypto Summit on March 7, where we might hear more details about the US crypto reserve plan.
Here are other key events to watch:
- Tuesday – Federal Reserve Chair Jerome Powell is testifying. If he hints at future interest rate cuts, Bitcoin could get a boost.
- Wednesday – The final services PMI report for the Eurozone will be released. A strong result could strengthen the euro, with mixed effects on Bitcoin. In the United States, the ADP Non-Farm Employment report will also be important—it gives a preview of the US job market, which could stabilize Bitcoin if the numbers are strong.
- Thursday – The weekly unemployment claims report is coming out. If claims are lower than expected, it could support Bitcoin as a risk asset. But if there’s a surprise jump, we could see more selling pressure.
- Friday – The Non-Farm Payrolls report will be a big one. If job growth is over 180,000, Bitcoin could climb. If it’s lower, Bitcoin might take another hit.
With all these events lined up, Bitcoin’s price could move quickly in the coming days. If you’re following the market, keep an eye on how traders react to these updates.
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