Bitcoin Price Faces Pressure Amidst Trump’s Automotive Tariffs: Traders Eye Sub-$80K Levels

Bitcoin (BTC) prices have experienced a notable drop of over 2.5% in the past 24 hours, now sitting at around $85,100. This decline has come as US President Donald Trump’s recent tariff announcements continue to shake up global markets, raising concerns among traders and investors. Bitcoin, often seen as a risk-on asset, has mirrored broader market downturns, leading many to brace for the possibility of the cryptocurrency retesting its recent lows, potentially dropping below $80,000.

Bitcoin’s Price Decline Driven by Global Market Uncertainty

The drop in Bitcoin’s price follows a wider trend across financial markets, which have been rattled by Trump’s announcement of a 25% tariff on all imported automobiles. This tariff, set to go into effect on April 2, 2025, has raised tensions between the US and its trade partners, particularly Canada and Mexico, both of which are expected to retaliate with tariffs of their own. These escalating trade tensions are contributing to an environment of economic uncertainty, which has negatively impacted risk-on assets like Bitcoin.

Bitcoin’s price decline reflects broader concerns in the equities market as well. The S&P 500 saw a decline of 0.33%, closing at 5,693.31 on March 27. Meanwhile, the Nasdaq composite dropped by 94 points (-0.53%) and the Dow Jones fell 0.37%. As Bitcoin has become increasingly correlated with traditional equities, this sell-off in the broader stock market has spilled over into the cryptocurrency market, further pressuring BTC’s price.

Bitcoin’s Relationship with Traditional Markets

Bitcoin has often been viewed as a speculative and risk-on asset, meaning its price tends to drop when traditional markets are under stress. This was notably the case during the COVID-19 sell-off in March 2020, and it appears to be happening again as global trade tensions heighten. The correlation between Bitcoin and US stocks has been on the rise, with a recent weekly correlation of 0.88, indicating that Bitcoin’s price movements are closely tied to those of equities.

Bearish Sentiment and Technical Analysis

As Bitcoin continues to face downward pressure, traders are increasingly eyeing the potential for further price declines. Popular analyst AlphaBTC has expressed concern over Bitcoin’s short-term price action, suggesting that the cryptocurrency could retest lower levels in the near future. "Bitcoin is losing the weekly open" at $86,000, he noted, adding that the price could be heading toward the monthly open and the “max pain” for options expiry. For Bitcoin to avoid deeper losses, it needs to hold the $84,300 level to prevent further declines.

Other analysts are taking a more cautious approach, suggesting that Bitcoin could see a pullback to the $78,000-$80,000 range if support at the $84,000 mark is broken. Michael van de Poppe, founder of MN Capital, warned that Bitcoin’s recent price movements are starting to “look slightly less good,” signaling that a retest of the $80,000 support level is a possibility.

What Lies Ahead for Bitcoin?

As we move closer to the April 2nd tariff deadline, volatility is expected to remain high. The crypto market has already been experiencing a significant amount of uncertainty, and analysts are predicting that this will continue as macroeconomic factors, such as trade tensions, weigh heavily on Bitcoin’s price action. While Bitcoin’s long-term outlook remains positive, short-term fluctuations and volatility are expected to persist, with many traders holding their positions and waiting for a clearer picture to emerge.

For further updates on Bitcoin and other cryptocurrencies, visit CoinMarketCap’s Bitcoin page.