## Bitcoin Plummets Below $112K as Trump‘s Tariff Proposal Sparks Market Selloff
Bitcoin (BTC) experienced a sharp decline, trading around $112,384-a 7.51% drop in the last 24 hours-amidst heightened market sensitivity to former President Trump’s recent proposal of a 100% tariff on all imports from China. The sudden announcement triggered widespread risk-off sentiment across global markets, with Bitcoin, frequently enough touted as a hedge against geopolitical instability, not immune to the downturn.
The proposed tariffs, unveiled during a campaign rally, introduce notable uncertainty into the global economic outlook, prompting investors to reassess their portfolios adn reduce exposure to perceived risk assets. While Bitcoin’s long-term fundamentals remain strong, the immediate impact of this macro-level development underscores the cryptocurrency’s increasing correlation with customary financial markets. The extent of Bitcoin’s recovery will hinge on the strength of ETF inflows, broader macroeconomic conditions, and overall market liquidity.
Despite the current pullback, analysts at Brave new Coin suggest that if key support levels hold and confidence returns, this dip could represent a mid-cycle correction rather than a essential shift in Bitcoin’s bullish trajectory. A potential rebound could pave the way for Bitcoin’s next phase of growth,potentially reaching targets previously projected around $201,000 following the recent halving event. The market is also bracing for a $21 billion options expiry, which could introduce further volatility in the near term.
Source: Bitcoin Price via Brave New Coin.
