Key Insights
- Bitcoin fell to $104,782 after Trump raised China tariffs, triggering strong selling across global markets.
- Analysts warn Bitcoin may slide toward $100K as technical charts show weakening momentum and rising resistance.
- Schiff predicts a deeper drop to $75K, saying Strategy’s large Bitcoin holdings may face pressure if prices keep falling.
A sharp downturn hit the cryptocurrency market as Bitcoin fell to 104,782 dollars after the US intensified its trade pressure on China. Traders moved away from risk assets after the latest tariff move and this sent both digital assets and traditional markets lower.
Trump’s Tariff Action Triggers Market Pullback
The US President announced that tariffs on Chinese exports to the US would rise to 100%. He also said that the US would impose export controls on all critical software. This came after China set new limits on rare earth mineral exports, and that step raised tension between the two economies.
Following the announcement, there was a rapid response in all markets around the world and the S&P 500 declined over 2%. Bitcoin dropped 8.4% by 2120 GMT and Ethereum dropped 5.8%. This violent sell-off indicated that investors were shifting towards safety and the political situation was becoming more tense.
Market analysts said that the conflict was now affecting both traditional and digital assets. Traders noted that higher tariffs could slow trade and this might weigh on risk markets. The move also revived questions about how Bitcoin behaves when global pressure rises.
Analysts Warn of Possible Deeper Decline
Several analysts issued fresh warnings after Bitcoin’s fall. Peter Schiff said that Bitcoin may drop to $75,000 and he added that this would erase the paper gains that Strategy recorded. The firm holds more than 640,000 Bitcoin and its average cost basis is around $73,981.
https://x.com/PeterSchiff/status/1977119789719207975?s=20
Schiff said that Strategy may face pressure if its premium continues to fall. He said that some investors fear that the company may dilute shares in the future. He also pointed out that Strategy trading at a discount could create new problems for shareholders. Schiff added that this possible drop could change how investors see the asset.
His remarks came as gold traded above $5,000 and Schiff said that he had been right about gold’s long-term strength. This added more debate between gold supporters and Bitcoin supporters during the market drop.
Bitcoin Technical Charts Point to Weak Momentum
Technical analysts said that Bitcoin’s failure to stay above a trendline from the 2017 and 2021 highs was a warning sign. The latest drop marked the third reversal from this level, and analysts said that this may open the path to a move toward $100,000 or lower.
The monthly chart showed long wicks on recent candles and this signaled that bulls were losing steam. The MACD histogram also moved lower compared to the period when Bitcoin first crossed $100,000. This suggested that upward strength was slowing.
The daily chart also turned negative. Bitcoin fell out of the growing channel resistance and the standard and long-term MACD values remained below zero. Analysts believe that the 200-day simple moving average was close to $107,000, which could be supportive, although the trend indicated a greater risk of a decline.
