Bitcoin’s price temporarily exceeded $82,000, only to drop below $80,000 in response to the announcement of new tariffs from the Trump administration on Canada. The prospect of further trade tariffs caused unease among market participants and caused both crypto and other risk assets to lose any gains they had made.
The price of Bitcoin reached a local high of $82,154 on Bitstamp before beginning to retreat. The news of the added tariffs coincided with data revealing that the number of job openings in the US slightly exceeded expectations. Following the tariff announcement, the S&P 500 traded down by 0.5%. Stock indexes also exhibited volatility. In light of these events, the Kobeissi Letter noted that, contrary to the rise in the S&P 500 during the start of Trump’s first term, it is now down 7% since January 20th.
Trading firm, QCP Capital, noted a lack of concern from Trump on the potential risk of recession, making matters difficult for risk assets. However, the firm also noted not all economic indicators were disappointing. The current negative sentiment significantly drove down ten-year treasury yields and weakened the US dollar, which is typically a beneficial factor for risk assets like US equities and crypto.
Meanwhile, the US dollar index (DXY) fell to 103.32, its lowest level since mid-October 2024. Interpretations of Bitcoin’s price activity indicate its future course is, as yet, uncertain. Analysis using the Elliott Wave Theory suggested there might still be potential for longer-term lows for Bitcoin’s price. Traders are awaiting evidence of a confirmed low, necessitating a sustained break above yesterday’s high in five waves.
Popular crypto trader CrypNuevo noted a notable response at the 50-week simple moving average (SMA) at about $75,500.1.