The cryptocurrency market faced significant pressure today as President Donald Trump's announcement of new tariffs on major trading partners, including Canada, Mexico, and China, spooked investors. The tariffs, which were unveiled over the weekend, have led to a broad sell-off in risk assets, including Bitcoin. The market's reaction reflects concerns about potential stagflation in the U.S. and the impact on the Federal Reserve's monetary policy. As a result, Bitcoin experienced a sharp decline, with its price dropping to a three-week low earlier in the day.
Despite the initial downturn, Bitcoin's price has shown some resilience, recovering from its earlier lows. Analysts suggest that Bitcoin's status as a "risk-off asset" may have helped it weather the storm better than other cryptocurrencies like Ethereum, which saw more significant declines. Joseph Edwards, head of research at Enigma Securities, noted that Bitcoin's relative stability compared to other digital assets is partly due to its perceived role as a hedge against macroeconomic uncertainty.
Bitcoin's price is currently at $100,391.09, marking a 1.06% decrease for the day. The cryptocurrency reached a high of $101,708.66 earlier but has since settled at its current level.