Crypto Market Crashes 4% as Bitcoin Drops – Tariff War Sparks Panic
Bitcoin and altcoins plunge as new U.S. tariffs trigger market turmoil, fueling inflation fears and investor uncertainty.
By Tylt Editorial Team
Bitcoin faces further downside risk, forming a bearish double-top pattern.
U.S. markets tumble as inflation concerns and tariffs fuel uncertainty.
Analysts warn of inflationary pressures as major companies adjust pricing.
The crypto market is witnessing intense volatility as a risk-off sentiment grips investors following new tariff announcements from the U.S. government. President Donald Trump has declared a 10% tariff on Chinese imports and a 25% levy on goods from Mexico and Canada. The move has led to retaliatory threats from these nations, exacerbating fears of a broader economic slowdown. Investors are responding by pulling out of high-risk assets, leading to a sharp selloff in digital currencies.
This downward spiral extends beyond cryptocurrencies. The U.S. stock market also closed lower on Friday, with the Dow Jones, S&P 500, and Nasdaq 100 each shedding nearly 1%. Inflation data has further rattled market participants, showing the fastest increase in eight months, reducing the likelihood of the Federal Reserve cutting interest rates anytime soon. Higher borrowing costs combined with tariff-related price hikes could push inflation even higher, forcing businesses to pass costs onto consumers.
Automakers like General Motors and Ford, which produce vehicles in Mexico, are expected to increase prices by 25% to offset the impact of tariffs. The price hikes will likely extend to consumer electronics, including televisions and smartphones, raising concerns over affordability and economic stability.
Historically, Bitcoin and other cryptocurrencies tend to struggle during periods of economic uncertainty, particularly when the Federal Reserve adopts a hawkish stance. Currently, Bitcoin has formed a bearish double-top pattern at $108,445, with a critical neckline at $88,940. This technical setup signals the potential for further declines, especially if the leading cryptocurrency breaks below its 50-day moving average support. A falling Percentage Price Oscillator and a weakening Relative Strength Index add to the bearish outlook, heightening the risk of a deeper correction.
Investors are now bracing for heightened market turbulence, with the crypto and equity markets reacting sharply to global economic shifts. As trade tensions escalate, the likelihood of prolonged volatility remains high, potentially pushing Bitcoin toward a crucial support level of $88,940.
