Bitcoin plummets after Trump trade war

Panic in crypto markets intensifies as investors seek refuge in self-custody wallets and 'Cruicers' increase their positions.

The price of Bitcoin fell more than 3% this weekend, trading at $97,585, after the announcement of trade tariffs imposed by Donald Trump on Mexico, Canada and China. Economic uncertainty and fear of inflation drove massive sales in the crypto market, especially affecting altcoins. Meanwhile, long-term investors took advantage of the drop to accumulate more BTC, withdrawing coins from centralized exchanges.

Bitcoin lost the dynamic support of the EMA25 at $101,000 and is now testing the EMA50 at $98,800 / TradingView

Trade war triggers panic in the crypto market and bitcoin falls

The president of the United States, Donald Trump, confirmed the imposition of tariffs of 25% on Mexico and Canada, and 10% on China, which unleashed a wave of sales in the crypto sector. Bitcoin, the leading cryptocurrency, lost 1.75% on Saturday and 3.03% on Sunday, hitting a low of $96,150. Altcoins, such as Ethereum, bore the brunt, reducing their dominance to just 10.7%, while Bitcoin increased its market share to 60%.

Inflation and Interest Rates: A New Challenge for Cryptocurrencies?

Economic analysts warn that tariffs could be inflationary, making it difficult for central banks to reduce interest rates. If rates remain high, the dollar could strengthen, further weakening risk assets such as cryptocurrencies. This scenario has generated uncertainty among investors, who chose to sell en masse over the weekend.

Long-Term Investors Accumulate BTC as Market Falls

Despite the price drop, long-term investors, known as "Cruicers," increased their positions in Bitcoin to 6.22 million coins. In addition, BTC balances on centralized exchanges fell to 2.16 million, indicating a move to self-custody wallets. This behavior suggests that more experienced investors see the drop as a buying opportunity.

Futures and liquidations: Bears dominate the market

Open interest in Bitcoin futures fell 1.76% in the last 24 hours, reaching $62.54 billion, its lowest level in 15 days. Liquidations in the futures market reached $1.09 billion, with 87.37% of the losses corresponding to long positions. This reflects the bearish pressure that dominated the day.

Bitcoin tests key supports

Bitcoin lost the dynamic support of the EMA25 at $101,000 and is now testing the EMA50 at $98,800. If the price closes below these levels, a downward trend change could be confirmed in the short term. The next support is fixed and is located at $91,700, a level that could be tested if the bearish streak continues. Trading volume remained in line with the 25-day average, indicating a strong presence of sellers.

As the crypto market faces one of its worst bearish streaks in weeks, long-term investors are showing confidence in Bitcoin, accumulating coins and withdrawing them from exchanges. However, the uncertainty generated by the trade war and the possible strengthening of the dollar keep traders on edge.

Disclaimer: This news is for informational purposes only and does not constitute financial advice. Cryptocurrencies are volatile assets; invest responsibly and do your own research.