Bitcoin Takes A Nosedive and Makes A Partial Recovery - Are Trump's Tariff's Really to Blame?

Yesterday evening Bitcoin started to pull back, then dropped below $100,000 and then fell all the way back to $92,500. It wasn't a great day for BTC. Since then it has bounced back to $95k and right now has recovered a little, it's currently trading at just under $99k. Given the scale of the drop that's not a bad partial recovery and in a short period of time also.

It's probably too soon to tell which way it will go next, Bitcoin is quite volatile at the moment. This volatility is a pattern we have seen consistently from Bitcoin in the past couple of weeks. Obviously yesterday's decline was something we haven't seen on that scale for a little while. So what happened?

Many of course are pointing the finger of blame at Trump, who on Saturday imposed new tariffs on goods coming in from Canada, Mexico and China, with EU tariffs looking very likely. This has sent a shockwave through the markets including crypto markets, even the new official Trump Token saw a 15% decline in price.

It seems strange that a new fiscal policy from government which impacts the conventional markets can now have so much influence over crypto, this of course is testament to the fact that crypto is now more mainstream than ever with the big boys balls deep in it. Years ago a government policy like this would have made only a minor dent on the cryptosphere.

In the past few hours Trump has announced a pause on Mexico tariffs. Soon after Bitcoin bounces back to $98k.

Tariffs now appear to be directly affecting crypto, but is the crypto economy really that aligned with the conventional markets nowadays? Perhaps the reality is they are. And as Bitcoin adoption continues to grow we will keep seeing more of this.

However, some are saying the Bitcoin nosedive is less to do with tariffs and more to do with money following the Trump agenda, including a lot of crypto assets. This may of course explain why we are seeing such volatility of late but I'm not so sure it explains Bitcoin's recent decline.

Let's not forget that Trump is supposed to be the pro-crypto US President, but if these tariffs really are to blame for Bitcoin's drop in price then Trump has some explaining to do. Or is this just the price we all have to pay for America to buy American again?

Peace!