Donald Trump’s sweeping trade policy is causing turmoil on the stock markets. Bitcoin starts the new week with losses.
Bitcoin price falls back to $75,000
The Bitcoin price has once again fallen significantly amid ongoing uncertainty surrounding the new US tariff package. On Monday morning, the price fell below the $80,000 mark in early trading and at one point reached as low as $75,000. Even before US President Donald Trump‘s announcement Wednesday evening that he would impose comprehensive new tariffs, the cryptocurrency was still trading at around $87,000.
Although Trump was initially considered a supporter of digital currencies, he has so far failed to live up to the expectations of many crypto enthusiasts. On the day of his inauguration, Bitcoin reached its all-time high of over $109,000. Since then, the price has come under pressure – partly due to growing uncertainty about US trade policy. Nevertheless, the current price is still more than ten percent above the level Bitcoin reached before Trump’s election victory in early November.
The Bitcoin price continues to be closely linked to the global liquidity situation and is increasingly acting as a barometer for broader macroeconomic developments. With trading on US stock exchanges resuming on Monday, price movements over the weekend point to continued high volatility, as the news agency DPA reports. Investors could be under additional pressure, especially since Fed Chairman Jerome Powell has warned of the potential economic consequences of the tariff measures proposed by Donald Trump – particularly with regard to rising inflation and slower economic growth.
This mix of circumstances is fueling concerns about stagflation – a state of economic stress in which conventional monetary policy tools lose their effectiveness. While stimulus measures could exacerbate the risk of inflation, a greater focus on combating inflation threatens to further slow growth.
The Bitcoin price fell again significantly at the start of the week, briefly falling back to the $75,000 mark. The price of the most important cryptocurrency was last quoted at around $76,500. (As of 2:08 PM)
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