President Donald Trump’s tough economic plans have impacted financial markets since his first week in office especially the digital currency world. The total crypto market lost its worth by 8.29% in a short time revealing the uncertain nature of this sector.
After the Federal Reserve rate increase some investors ignored market problems yet everyone wonders if this market can survive under present pressures. In 2025 investors will determine if Bitcoin keeps holding its status as a secure asset.
Bitcoin has long been considered a digital store of value but experts question this status more often now because of the rising U.S.-China economic conflict. The continuing Trump-era trade war without interruptions causes worldwide markets to shake again.
Bitcoin Declines 6% as Market Faces Trillions in Losses
The market value of Bitcoin decreased 6% leading to substantial trillions in loss. To shield their funds institutions invest in classic defense channels. The price of XAU gold has risen 3% per week to hit $2,880 per ounce marking its highest recorded value during times of economic uncertainty.
The United States dollar index has pushed past 109 after Trump altered import taxes with China by 10%. Investors pull funds from stock exchanges and put them into bonds because they fear further interest rate hikes.
Recent slower U.S. inflation trends only provide short relief because the tariff hikes from important trading partners will drive inflation numbers up again. The Federal Reserve leadership awaits major economic data to guide any rate change decisions.
Upcoming CPI data will show if inflation rises or declines this month which will determine if Bitcoin prices drop under $90,000 again.
No Rate Cuts in Sight: Can Bitcoin Maintain Its Support Levels?
During Trump’s first presidency the economy showed similar features. During 2018 Bitcoin price dropped 72% when Trump implemented special tax breaks for Chinese imports which caused the year-end market close at $3,740. The United States has cut its imports from China by 8% since 2018 to currently represent 13.5% of its total imports.
The U.S. economy turns away from Chinese manufacturing with slower growth as new consequences emerge. During the last seven years Bitcoin’s value has grown as a store of value but people still trust gold more than Bitcoin both in size and in the financial marketplace.
The threat of cryptocurrency risk may lead institutional investors to avoid investing in these digital assets at present. Due to no rate cut being possible Bitcoin needs to sustain its support areas or else it may face difficulties.
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