The White House confirms a 104% tariff on China will take effect at midnight tonight, creating a major shock in the cryptocurrency market. After a brief recovery to $79,000, Bitcoin price dropped to $76,000, with the total liquidation value in the cryptocurrency market reaching $300 million.
However, there are positive signals as Bitcoin's Longing positions increased by 54%, reflecting investors' confidence in recovery potential. Tomorrow is predicted to be a volatile day, not just for traditional financial markets (TradFi) but also for the cryptocurrency market, which is expected to better withstand the economic storm.
As Trump's trade policy is about to take effect, markets are facing deep instability. Just yesterday, over $1 billion was liquidated from the cryptocurrency market, but optimism about a potential trade deal helped prices recover somewhat.
However, the White House has officially confirmed the 104% tariff on China will take effect at midnight tonight, causing the cryptocurrency market to plummet once again:
China is America's largest trading partner, and these extensive tariffs could cause serious economic damage. Cryptocurrencies, in particular, are experiencing significant impact. Publicly listed cryptocurrency companies have gone through a challenging trading day, with MicroStrategy (MSTR) stock dropping over 11%.
Additionally, stocks of Coinbase, Robinhood, and publicly listed Bitcoin mining companies also dropped nearly 5%.
Bitcoin is facing a major risk. Although a recent report confirmed that Bitcoin is one of the least affected assets by tariffs in the cryptocurrency sector, its risks seem to be increasing.
Today, Bitcoin dropped 2.6%, approaching the $75,000 level, while over $300 million was liquidated from the cryptocurrency market. If Bitcoin falls below this threshold, the market may witness more significant price drops.
Morning price increase signals showed that the market still has confidence in recovery. This could help the entire cryptocurrency market, including Bitcoin, withstand tariff pressures.
Currently, Bitcoin's Longing positions have increased to 54%, indicating that most investors are betting on Bitcoin's potential to recover and reach higher prices.
Tomorrow will be a crucial moment for trade policy, the cryptocurrency market, and the entire traditional financial market (TradFi). Hope that Trump will not escalate tensions with China seems to have faded.
However, it remains unclear whether the cryptocurrency market will continue to fluctuate with stock market developments after tariffs take effect, or if risky assets will reverse and become a safe haven against the looming inflation risk.
Disclaimer: The article is for informational purposes only, not investment advice. Investors should thoroughly research before making decisions. We are not responsible for your investment choices.
Join Telegram: https://t.me/tapchibitcoinvn
Twitter (X): https://twitter.com/tapchibtc_io
Tiktok: https://www.tiktok.com/@tapchibitcoin
Youtube: https://www.youtube.com/@tapchibitcoinvn
Mr. Teacher
