Bitcoin Price Drops 7.2% Following Trump’s Tariff Announcement

The Bitcoin price fell by 7.2% from $88,526 to $82,150 within four hours following the announcement of reciprocal tariffs by US President Donald Trump. This decline coincided with a broader market downturn, resulting in a $2 trillion loss in the S&P 500 futures market.

Market Reactions to Tariff Announcement

Key points from the tariff announcement include:

Trump announced tariffs on 185 countries simultaneously.
The baseline tariff rate starts at 10%, but many countries will face higher rates based on their current tariffs on US goods.
China might incur a 34% tariff, while the European Union could see a 20% tariff.
The S&P 500 futures experienced a rapid shift from a 2% gain to a 4% loss during the announcement.
Bitcoin, which had risen 8.9% earlier, dropped significantly amidst this volatility.
Analysts suggest that the tariffs introduce uncertainty and may lead to recessionary pressures.

Economic Projections

Forecasts from various institutions indicate potential risks:

JPMorgan predicts the tariffs could increase inflation by 1–1.5% and generate nearly $400 billion in revenue.
UBS warns that these tariffs could push inflation to around 5% due to increased import costs.
Current estimates suggest that targeted tariff revenues may fall short of expectations, potentially reaching only half of the anticipated $600 billion annually.

As of now, Bitcoin has partially recovered to $83,207.

Bitcoin price