After the US President raised tariffs and imposed them on all countries around the world, focusing more on specific countries, such as China, trade tensions began between China and the United States.
In light of this, the cryptocurrency market has witnessed sharp fluctuations, especially with new threats issued by US President Donald Trump to impose an additional 50% tariff on Chinese imports.
These statements, along with conflicting reports from the White House, contributed to increased uncertainty in the markets and directly impacted the performance of Bitcoin and other cryptocurrencies.
Initially, media outlets reported a possible 90-day suspension of tariffs, attributed to White House advisor Kevin Hassett.
However, the White House quickly denied any knowledge of these statements, which led to confusion in the markets, particularly given the contradiction between what advisors were saying and what the US administration officially issued.
Although some countries were subject to 10% tariffs, China, the European Union, and several other major economies faced much higher rates.
According to CNBC, Trump threatened to raise tariffs on China by an additional 50% if it does not roll back the 34% tariff it imposed on US goods, which could bring the total US tariffs to 104%.
In the cryptocurrency market, these developments were immediately reflected in the price of Bitcoin.
After falling to $75,000, the price later rose to over $81,000 before falling back below $79,000 due to continued political and trade tensions.
Traditional markets were not immune to these disturbances.
The S&P 500 index has fallen more than 11% since Wednesday, reflecting the pressures on Wall Street amid these volatile conditions.