📉 Bitcoin, Trump and the financial roller coaster: Are we on the verge of a new crisis?
This weekend has been a crazy one. Bitcoin continues to fall, and although we have seen some support at the $90K level, the selling pressure remains strong. It doesn’t look like there is enough buying strength to take us back to $100K in the near term. And not just Bitcoin, the cryptocurrency market in general is in panic mode. Ethereum, Solana, and even meme coins are suffering significant losses. What’s going on?
Well, add to this Trump’s announcement of new tariffs on Canada, Mexico, and China, and it gets even more complicated. Traditional markets are also bleeding, with the **Dow Jones falling more than 3% **and the S&P 500 losing 0.50%. Not least because these tariff measures not only affect the economies of these countries, but also have a direct impact on inflation and global economic stability.
Trump has imposed a 25% tariff on imports from Canada and Mexico, and 10% on Chinese products. In addition, he has closed the loophole that allowed duty-free imports for values below $800. This has provoked an immediate response from Canada, which has hit back with 25% tariffs on $100 billion worth of U.S. goods, and has withdrawn U.S. alcohol from stores. Mexico is also preparing countermeasures, and China has turned to the WTO to seek a response.
Amid all this chaos, the U.S. dollar has risen to an annual high, and oil is up 2%. Economists are already warning of accelerating U.S. inflation, rising consumer prices and a new wave of global economic instability. And meanwhile, Bitcoin and cryptocurrencies, which were supposed to be a safe haven in times of uncertainty, are plummeting.
But it’s not all negative. There is one trend that I find interesting and could have a positive long-term impact: more and more U.S. states are investing government funds in Bitcoin. Utah, for example, is pushing a bill to invest 5% of state reserves in BTC and stable coins. Massachusetts wants to allocate up to 10% of its $9 billion stabilization fund to cryptocurrencies, and Arizona could become the first U.S. state to officially include BTC in its reserves.
This is important for several reasons. First, Bitcoin is gaining legitimacy as a state-level investment asset. Second, large state pools could drive the market, generating new demand for BTC. And third, other states and even nations could follow suit, accelerating institutional adoption of cryptocurrencies.
However, in the short term, all this does not seem to be enough to counteract the uncertainty generated by Trump’s measures and the fall of traditional markets. The question we are all asking ourselves is: is this the low point or just the beginning of the crisis?
Personally, I think it is still early to declare the beginning of a bear market, but there are no clear signs of an imminent recovery either. For now, I prefer to wait and see how things develop, especially with the opening of the US markets.
What about you, do you think this is an opportunity to buy Bitcoin and other cryptocurrencies at lower prices, or would you rather wait for the waters to calm down? Leave me your opinion in the comments.
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