Donald Trump and His Tariffs: How Much Does His Decision Matter for Bitcoin?

If you thought this week would be calm in the financial markets, you should know that Donald Trump has just completely changed the landscape. With decisions that go beyond Wall Street, his trade policies have a direct impact on our cryptocurrency portfolios. The question is not just how big the threat of tariffs is, but how long it will take Bitcoin to recover from this blow.

The Height of Pressure: 15% Tariffs Shake the Crypto Market

The tariff measures implemented by the U.S. administration have caused a ripple effect in global markets. Bitcoin is no exception and is already feeling the direct impact. In the last 24 hours, the digital asset’s price dropped to $65.54K, recording a 2.98% decline in the same period. This movement is not isolated; it’s part of a chain reaction that started in traditional markets and quickly spread to the crypto ecosystem.

Wall Street is trembling, and with it, the entire cryptocurrency industry. When stock markets destabilize, investors seek refuge or simply withdraw capital, creating widespread selling pressure. Trump’s trade decisions have a much broader reach than many imagine, turning Bitcoin’s volatility into a sensitive indicator of global economic health.

58.6% Correlation: When Wall Street Coughs, Bitcoin Falls

There is a 58.6% correlation with the S&P 500 that is already shaping Bitcoin’s immediate future. In simple terms, this means that if U.S. stock indices suffer a severe drop, Bitcoin could experience an even greater crash. This high correlation is a sign that the crypto market has lost some of its independence and is increasingly behaving like a traditional risk asset.

The mechanism is clear: when economic uncertainty and trade tariffs loom, institutional investors close high-risk positions. Bitcoin, being considered a volatile and speculative asset, is usually among the first to suffer liquidations. Leverage in the market has already decreased by 28%, indicating that many traders have been forced out of their positions due to insufficient margins.

Technical in the Red: The Bearish Triangle and Critical Supports

From a technical perspective, Bitcoin’s situation is concerning. The chart shows a clearly defined bearish consolidation triangle, where every recovery attempt is rejected by aggressive sellers, creating lower highs. This technical formation suggests that if we do not hold the support at $67,500, the next bearish target would be around $64,300.

The outlook becomes more complicated if Bitcoin loses the $67,500 level. In that scenario, a plunge toward $58,000 not only becomes possible but likely. The Relative Strength Index (RSI) indicates Bitcoin is oversold on the downside, which could mean a short-term technical rebound, but without positive economic news, any rally will be fleeting.

What Causes This Chaos in Cryptocurrencies?

The current disorder in the crypto market results from multiple converging factors. First, the clearing out of inexperienced traders who had excessively leveraged their positions. Second, the defensive migration of capital from altcoins to Bitcoin, with the Altcoin Season Index dropping nearly 20%. And third, the uncertainty over upcoming U.S. PCE inflation data expected next Monday.

Altcoins are suffering especially hard, while investors prefer “the lesser of two evils,” choosing to hold their assets in Bitcoin despite its decline, considering it a relative refuge. This capital migration further reduces liquidity in the altcoin market and concentrates pressure on Bitcoin.

Final Analysis: Can Bitcoin Withstand This Pressure?

We are at a critical moment where Bitcoin’s strength will be tested. The level of $67,500 is the line that will determine whether the market can reverse the trend or if we will fall into more dangerous territory. Donald Trump’s tariff decisions have opened a door of uncertainty that markets have not yet fully processed.

The key question is whether Bitcoin has enough institutional support to bounce from these supports or if tariffs and global economic pressure will mark the beginning of a longer period of weakness. What is clear is that the threat level posed by Trump is significant, and Bitcoin will need to demonstrate resilience in the coming days to maintain investor confidence.