Bitcoin Sinks to $80K as Trump’s Tariff Plans Shake Markets—What’s Next?
The crypto market took a hit this week as Bitcoin (BTC) plunged below $80,000, marking its lowest point since November 2024. The drop comes amid renewed economic uncertainty, fueled by President Donald Trump’s latest tariff plans and a strengthening U.S. dollar.

Market Turmoil: Bitcoin Breaks Key Support
Bitcoin extended its downward slide on Friday’s Asian trading session, dipping below its 200-day simple moving average (SMA). This marks a 16% loss in just one week, a sharp decline that has traders questioning whether the bull market is over—or if this is just a temporary correction.
Altcoins suffered even bigger losses:
- XRP fell below its critical 23.6% Fibonacci retracement level, signaling the potential for deeper declines.
- Solana (SOL) dropped to $125.60, its lowest price since September 2024.
- Dogecoin (DOGE) retraced nearly 78.6% of its previous rally, falling below the $0.20 mark.
Trump’s Tariffs: A Game-Changer for Global Markets?
The sudden market volatility isn’t just about crypto—it’s part of a broader shift in global financial sentiment. On Thursday, President Trump announced a new wave of tariffs, including:
- Tariffs on Canada and Mexico, effective March 4.
- A doubling of the existing 10% tariff on imports from China.
These aggressive trade policies are pushing investors toward safe-haven assets like the U.S. dollar, driving the U.S. dollar index (DXY) to 107.30—its highest level in weeks.
What’s Next for Bitcoin and Crypto?
With increasing economic uncertainty and a rising dollar, Bitcoin’s short-term outlook remains shaky. However, historically, BTC has shown resilience in times of financial turbulence. The question now is: Will Bitcoin rebound as a hedge against inflation, or is further downside ahead?
Bitcoin Plunges Below $80K as Trump’s Tariff Plans Shake Markets—What’s Next?
The cryptocurrency market is reeling from fresh volatility as Bitcoin (BTC) dropped below $80,000, marking its lowest level since November 2024. This sharp decline follows renewed trade war fears sparked by President Donald Trump’s announcement of new tariffs, leading to a stronger U.S. dollar and increasing pressure on risk assets like cryptocurrencies.
Bitcoin’s Breakdown: A Deeper Correction or a Buying Opportunity?
Bitcoin’s price decline accelerated on Friday’s Asian trading session, slipping below its 200-day simple moving average (SMA)—a key technical level that many traders watch as a sign of long-term market trends.
Key Market Data:
- Bitcoin (BTC): Dropped 16% in one week, briefly falling below $80,000 for the first time since November.
- XRP: Lost the 23.6% Fibonacci retracement level, suggesting potential for deeper losses.
- Solana (SOL): Fell to $125.60, its lowest price since September 2024.
- Dogecoin (DOGE): Retraced 78.6% of its previous rally, dropping below $0.20.
This correction is causing concern among investors, particularly those who entered the market near Bitcoin’s all-time highs above $110,000. The drop has also led to billions in liquidations across leveraged crypto positions.
Trump’s Tariffs: A New Economic Shockwave
The latest crypto sell-off isn’t happening in isolation. Macroeconomic factors are playing a major role, particularly Trump’s aggressive tariff plans aimed at major U.S. trade partners:
- Canada & Mexico Tariffs: Set to take effect March 4, 2025.
- China Tariffs: The existing 10% tariff on Chinese imports will be doubled, adding further strain to global trade relations.
These policies are strengthening the U.S. dollar, as investors shift capital toward the perceived safety of fiat currencies and U.S. bonds. The U.S. dollar index (DXY) surged to 107.30, continuing its rally from Wednesday’s low of 106.15.
The Dollar’s Strength vs. Bitcoin’s Hedge Narrative
Historically, Bitcoin has been viewed as an inflation hedge and a hedge against fiat devaluation. However, in times of dollar strength, BTC often struggles. A rising dollar means:
Stronger demand for cash and U.S. bonds.
Weaker demand for high-risk assets, including Bitcoin and stocks.
Increased pressure on emerging markets, which rely on cheaper dollars for trade.
With the dollar strengthening, Bitcoin may face further downside pressure unless macro conditions shift.
Is Bitcoin’s Bull Run Over? Key Scenarios to Watch
Scenario 1: A Bounce Back Above $80K
- If Bitcoin quickly reclaims $80,000, it could signal a bear trap, where weak hands are shaken out before a price recovery.
- Supporters of this view argue that long-term fundamentals remain strong, with increasing institutional adoption and upcoming Bitcoin ETF inflows still a major factor.
Scenario 2: More Downside Toward $70K or Lower
- If BTC fails to reclaim key technical levels, it could trigger further downside.
- Some analysts believe $70,000-$72,000 is the next major support zone, with $65,000 as a worst-case scenario in the short term.
Scenario 3: A Macro-Driven Reversal
- If U.S. economic data weakens or inflation picks up again, the Federal Reserve may pause rate hikes or consider cuts, which could weaken the dollar and boost Bitcoin.
- Institutional investors could step in to buy the dip, especially if Bitcoin’s adoption narrative remains intact.
Final Thoughts: Should You Buy the Dip?
While Bitcoin’s price action is nerve-wracking, long-term investors know that crypto markets move in cycles. The key takeaway here is that short-term volatility doesn’t change the long-term fundamentals of Bitcoin.