Bitcoin falls to $85,000 as US announces tariffs on Canada and Mexico in March

BitcoinBTCAs markets processed confirmation of US trade tariffs, the price fell back to $85,000 on February 27th.

BTC Price Drops as Trump Says Tariffs Will Go Ahead

Data is available from Cointelegraph Markets Pro The following are some examples of how to get started: TradingView BTC/USD pulled back on a day from an initial relief surge to $87,000.

The bulls lost steam after the US President Donald Trump redoubled his tariffs on Canada and Mexico.

Commencing on March 4, the “will, indeed, go into effect, as scheduled,” Trump has written in a blog post. Truth Social.

Both the S&P 500 and Nasdaq Composite Index opened down as a result, while the US dollar index (DXY) gained 0.6% to cancel out more than a week of downside.

Trading resource The Kobeissi Letter, in response to the poor BTC performance, attributed it to increased stock correlation and decreased liquidity.

“Ironically, a lot of it flows back into the US Dollar,” It is written in the a dedicated X thread On the subject. 

“The US Dollar becomes the ‘safest risky asset’ during trade wars because it’s the most ‘stable’ currency.”

Kobeissi said that the majority of the investors who rushed to the exit were smaller investors. record outflows Bitcoin Exchange-Traded Funds (ETFs) in the US

“Bitcoin ETFs have now seen 6-straight daily withdrawals, totaling -$2.1 BILLION. The majority of withdrawals were taken by retail investors,” This is confirmed. 

“Liquidity has dropped.”

Bitcoin bullish monthly close “not looking good”

Bitcoin traders sought to pinpoint definitive areas where BTC/USD could reverse.

Related: Short-term crypto traders sent record 79.3K Bitcoin to exchanges as BTC crashed to $86K

You can also read about the advantages of using Cointelegraph reportedA “gap” CME Group’s Bitcoin Futures Market is a very popular market.

“Bitcoin looks determined to close that $77,360 November CME gap, which could intersect with the September 2023 trend line,” popular trader Justin Bennett continued On the topic, with an illustrated chart. 

“Probably some relief in March from this area, but the monthly chart looks toppy unless $BTC can miraculously close February above $92k. The odds aren’t looking good.”

$92,000 previously marked The aggregate cost base for Bitcoin traders, which forms part of the ceiling of an three-month trading range.

This article contains no investment recommendations or advice. Risk is inherent in every investment decision and trade. The reader should always do research prior to making a final decision.