Trump's tariff plans stir Bitcoin volatility amid market chill
Bitcoin prices are falling sharply for the first time since Donald Trump won the presidential election. Within a few hours, the cryptocurrency's price dropped by several thousand dollars. The digital currency market has cooled, notes Bloomberg.
9:34 AM EST, November 26, 2024
Since the US presidential election, bitcoin has rallied. The digital currency approached $99,000 but didn't break the $100,000 ceiling. Cryptocurrency prices soared last Thursday (November 21) after Gary Gensler, the head of the US Securities and Exchange Commission (SEC), which also regulates the cryptocurrency market, announced his resignation.
On Thursday, after 2 PM Eastern Time, bitcoin's price reached $98,500, rising by several thousand after the news of Gensler's resignation. At 11:40 AM, the value of the most popular cryptocurrency was $95,700.
In the following days, bitcoin's price fell by several thousand dollars and then rose again. However, it didn't break the psychological barrier of $100,000.
According to my projections, Bitcoin's price may rise to as high as $120,000 by the end of this year. However, Daniel Kostecki, chief market analyst at CMC Markets Poland, predicted that 2025 would be a critical year for cryptocurrency.
The price of Bitcoin has dropped to approximately $94,000 (on the morning of November 26). Bloomberg Agency points to the "cooling enthusiasm related to the adoption of cryptocurrencies by the president-elect." The broader cryptocurrency market is also at a "standstill," although it has grown by $1 trillion since the Republican victory.
Trump's announcements regarding tariff increases for China, Canada, and Mexico may influence Bitcoin's price. "On January 20, as one of my first executive orders, I will sign all necessary documents to impose a 25% tariff on ALL goods imported into the United States from Mexico and Canada through their absurdly Open Borders," Trump wrote in a post on Truth Social.
Trump added that the tariffs will remain in effect until both countries halt the supply of drugs, particularly fentanyl, and the influx of migrants into the United States.
Following this announcement, futures contracts for American stocks fell.
Trump and cryptocurrencies
Bloomberg recalls that Trump has committed to making the USA a global home for cryptocurrencies by supporting favorable regulations and national bitcoin reserves. The agency wonders how quickly he can implement changes and whether all of them are feasible.
In the past, Trump was a cryptocurrency skeptic but became a supporter after digital asset companies invested significantly during the election campaign to promote their interests.
It is estimated that the US government holds around 200,000 bitcoins, primarily from confiscations. According to Trump's announcements, this number will reach one million within five years, which is about 5% of the total cryptocurrency supply (21 million units)."
