After U.S. President Donald Trump’s latest tariff move, the lights just turned off. Bitcoin [BTC] tried to stay calm but couldn’t.
What happened?
President Trump announced on the 21st of February that global tariffs would rise to 15% with immediate effect.
Bitcoin briefly pushed higher toward the $68K mark in the hours around the announcement, but the move didn’t last.
Source: TradingView
Ethereum [ETH] also turned lower, while TOTAL3 (which tracks the total crypto market cap excluding BTC and ETH) dipped about 0.29%. There’s weakness across the altcoin board.
About the same, Wenny Cai, COO at SynFutures, told AMBCrypto,
The tariff hike followed a court decision limiting Trump’s use of emergency powers, though he cited other trade laws to justify the increase.
Critics, including attorney Adam Cochran, argued those laws restricted how long and how widely such tariffs can be applied.
It’s not as bad as it looks
Sentiment has dropped, with the Fear and Greed Index falling to levels of “extreme fear” at press time. Investors are pulling back, expecting more downside.
Cai added,
Source: Coinmarketcap
But one look at the numbers will tell you that these moments haven’t always lasted.
Economist Timothy Peterson recently noted in an X post that the long-term outlook for Bitcoin is hopeful.
According to his analysis, which tracks performance since 2011, when at least half of the past two years were positive, Bitcoin went on to trade higher 10 months later about 88% of the time.
Source: X
On average, returns during those periods reached as high as 82%.
Peterson believes that Bitcoin could climb significantly from current levels, potentially reaching around $122,000 over time. So, while fear is dominating the market right now, there may yet be light at the end of the tunnel.
Final Summary
- Bitcoin price slipped after Trump’s 15% tariff shock, but BTC has risen 88% of the time in similar setups.
- With Crypto Fear & Greed at 14, this dip could just be panic.
Source: https://ambcrypto.com/bitcoin-slips-as-trump-raises-tariffs-to-15-but-recovery-is-still-possible/
