Bitcoin’s price recently dropped sharply from nearly $83,000 to below $75,000 in just a few hours. This sudden decline led to significant liquidations, erasing around $990 million in leveraged bets. Traders had taken high-risk positions, borrowing funds in anticipation of Bitcoin’s rise. However, the unexpected price fall caught many off guard.
Before this crash, Bitcoin had been performing well, even outpacing major stock markets. Some investors viewed it as a safe haven, similar to digital gold. However, this recent dip has raised concerns.
Analyst Jonatan Randing noted that Bitcoin is approaching its 50-week Exponential Moving Average (EMA), a key technical level that often acts as support during bullish trends. He questioned whether we are still in a bull market.
The situation is further complicated by rising tensions in international markets. Former U.S. President Donald Trump announced a 20% tariff on goods from the European Union (EU), prompting the EU to consider retaliatory tariffs. This escalating trade conflict has unsettled investors.
Other countries are also reacting to the situation. China may reinstate its previous tariffs on U.S. goods, while India is contemplating taxes on American products like electronics and agricultural items. Mexico and Canada are reviewing their trade agreements with the U.S., and Brazil is monitoring developments closely.
Global stock markets are feeling the pressure. Last week marked the worst performance for the S&P 500, NASDAQ 100, and Dow Jones since the COVID-19 crash in 2020. Investors are concerned that these new trade tensions could slow economic growth and increase inflation.
