BTC Continues To Struggle As Donald Trump Proposes Controversial Tariff Policy

Bitcoin (BTC) has really struggled over the past week, with the flagship cryptocurrency plunging to below $53,000 in a matter of hours. Unsurprisingly, the bearish trend extends to altcoins as well. Ethereum (ETH), for instance, has seen a more than 4% drop, now struggling around $2,250. Elsewhere, BNB has lost 3%, XRP is down by 3%, and SOL has decreased by 2.5%.

DOGE has been hit hardest among the larger-cap altcoins, with a significant 5% drop, pushing its price below $0.1. Other cryptocurrencies, including TON, BCH, SHIB, LTC, OKB, and XMR, are also experiencing significant losses.

Persistent Troubles

Last week, Bitcoin fell below the crucial $60,000 threshold, and the downward trend has continued. After a brief attempt to rebound on September 3rd, bearish forces have largely taken control, leading to the latest drop.

Before this recent decline, Bitcoin faced multiple rejections and saw lower daily highs. A temporary boost came on Friday when the US job report for August revealed a slight decrease in unemployment rates. This led to a surge for BTC as it rose to $57,000. However, this increase turned out to be short-lived as almost immediately afterward, the price plummeted to $54,000, and further bearish momentum drove it to a monthly low of $52,700 on Bitstamp.

Although Bitcoin has recovered slightly to just above $54,000, it remains down 4% for the day and over 8% for the past week. Its market cap has fallen to $1.070 trillion, and its dominance over altcoins has slipped to 53.5%.

Other Markets

In a dramatic move, Donald Trump has pledged to impose a hefty 100% tariff on any country that distances itself when it comes to the US dollar, making such a shift incredibly costly. Meanwhile, the European Central Bank is expected to cut interest rates again, setting the stage for similar actions by the Federal Reserve. The Singaporean oil sector is also grappling with falling prices while CLO equity holders are restructuring deals at a record pace.

On the global stage, President Biden is engaging with Iraqi Prime Minister Mohammed Shyaa Al-Sudani as Iraq begins ambitious projects to add 614MW of power. In Houston, residents face an extended blackout due to extreme heat. In Asia, as Hong Kong and Shenzhen debate the future of China, investors grow impatient with the sluggish stock market recovery. Lastly, numerous Chinese state-owned banks are facing substantial potential losses.