U.S president Donald Trump has hinted at an upcoming geopolitical tension with threats of new tariffs on Russia. This news has sent shockwaves amongst crypto market participants worried of a potential market crash if the tariffs are implemented. Furthermore, BTC is already facing bearish pressure with the price risking a drop below $80,000 level if geopolitical tension prevails.
A drop in the price of Bitcoin could also result in more turmoil across the crypto market as most altcoins follow the trend of BTC. Let’s explore more details about why the new tariffs on Russia puts BTC and the general crypto market at risk.
Trump Hints at New Tariffs on Russian Oil
In a recent development reported by NBC News, Donald Trump has highlighted his anger towards Russia’s president Vladimir Putin. The U.S president shared on a phone call with Meet the Press’ Kristen Welker that he is “very angry” and “pissed off” by Putin for criticizing Volodymyr Zelenskyy. Putin recently claimed that Zelenskyy’s leadership is not credible as per a report by AFP, hence sparking concerns about the continuity of the war between Russia and Ukraine.
With Trump pissed off by Putin’s statement which he termed as “not going in the right location,” he disclosed his plan to impose secondary tariffs on all oil coming from Russia. According to the report by NBC News, the U.S president said, “if Russia and I are unable to make a deal on stopping the bloodshed in Ukraine, and if I think it was Russia’s fault…I am going to put secondary tariffs on all oil coming out of Russia.”
Trump further added that the tariffs to be imposed could be 25% or even more. “There will be a 25% tariff on all oil, a 25- to 50-point tariff on all oil,” Trump shared on the early Sunday morning call with NBC News. A tariff of this magnitude could potentially result in Russia imposing reciprocal tariffs hence leading to a trade war between countries.
The tariffs on Russia could come in within a month if the U.S and Russia fail to strike a cease fire deal. Additionally, Trump threatened to bomb and impose secondary tariffs on Iran if they fail to sign a deal for Iran to not develop a nuclear weapon.
Impending Impact of Trump’s Tariff Threats on the Crypto Market
Geopolitical tensions have historically had a negative impact on the crypto market and the recent development might not be any different. In fact, the countries dependent on Russian oil; including Turkey, Brazil and India, could face higher oil prices. This might further trickle worldwide causing higher energy costs.
In case oil prices go up, miners could sell off their BTC holdings due to higher energy costs. A scenario like this would further result in a dip in price of Bitcoin as investors might opt for safer investment options. Besides Bitcoin, altcoins may also experience a price dip in case BTC falls.
Trump’s Tariffs Risks a BTC Price Dip
BTC is trading at $82,584.64 with a slight dip of 0.03% dip on the day as per the data on Coinmarketcap. Nonetheless, trading activity around the coin termed the “digital gold” has waned out. This is clearly depicted by the trading volume of BTC which has dropped by 24.35% to $13.34 billion.
If geopolitical tensions continue to prevail in the market, Bitcoin could drop below $80,000 price level. Investors should thus monitor the development of Trump’s hinted tariffs on Russia as it could impact the market in a significant manner.
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