Bitcoin Plunges to $76,600, Rebounds to $83,000 Amid Trump's Tariffs and Market Volatility

Bitcoin experienced significant volatility, dropping below $77,000 for the first time since November, marking a 30% decline from its January peak of $110,000. The cryptocurrency briefly fell to $76,600 before rebounding to above $83,000, with a 7% rebound reaching a peak of $82,154. This fluctuation was influenced by broader market concerns, including a selloff in US equities led by technology stocks and escalating trade tensions. The market downturn was exacerbated by President Donald Trump's aggressive tariffs on Canada, Mexico, and China, which have raised fears of a potential US economic downturn. These tariffs have disrupted $2.2 trillion in trade, contributing to a $4 trillion loss in the US stock market. Additionally, a $1.5 billion hack has further rattled investor nerves. Trump's recent efforts to support the cryptocurrency industry, including the creation of a US Bitcoin reserve, have failed to bolster market sentiment, leading to $731 million in liquidations. Arthur Hayes, co-founder of Bitmex, predicted that Bitcoin could bottom out at around $70,000, a 36% correction from its all-time high, which he considers normal for a bull market. Hayes anticipates a further decline in traditional markets and a crisis in traditional finance before central banks ease policies, potentially triggering the next cryptocurrency rally. Bitcoin's past performance, with a 72% drop in 2018 due to a similar trade war and 2.9% inflation, adds context to the current market dynamics.