Bitcoin (BTC) has experienced a significant drop, falling to the $82,000 mark on Thursday morning and registering a 4% loss following United States President Donald Trump’s announcement of widespread tariffs on global trading partners.
This action has rattled both traditional and digital asset markets, sparking a sell-off in risky assets, including major cryptocurrencies.
The market downturn mirrors broader crypto trends, with Ethereum (ETH) losing 2.96% to trade at $1,823.34, and XRP dropping 2.21% to settle at $2.05. Solana (SOL) experienced even steeper losses, shedding over 9% of its value at one point.
BTC was trading around $85,000 before the latest dip.
Impact of Trump’s Tariffs on Global Trade and Cryptocurrency Markets
Trump’s tariffs, described as one of the most extensive deployments in U.S. history, include:
- A 10% baseline tax on all imports.
- A 25% levy on foreign-made cars.
- Reciprocal duties set at 50% of the rates imposed on American exports by other nations.
The proposal spans 185 countries, including Nigeria, whose exports to the U.S. will now face a 14% tariff, compared to the 27% tariff claimed by the U.S. on its imports from Nigeria.
Between 2015 and 2024, Nigeria’s trade with the U.S. reached a combined N31.1 trillion, according to data from the Nigerian Bureau of Statistics (NBS).
Within this period, imports totaled N16.4 trillion, accounting for 8.7% of Nigeria’s global exports.
Bitcoin’s downturn further highlights the ripple effects of global economic uncertainty. After hitting a trading low of $82,141—down from a recent peak of $89,042—BTC/USD remains close to its 100-hour Simple Moving Average at $83,500, illustrating heightened market volatility.
What you should know
On-chain data from Glassnode reveals that Bitcoin’s current market differs from past cycles. Investors who purchased BTC between 2020 and 2022—with cost bases ranging from $3,600 to $69,000, have mostly held their positions despite price fluctuations.
- The share of wealth held by these investors dropped by 3% from its peak in November 2024, but still reflects historically high levels. This contrasts with previous cycles, where short-term holders (STHs) controlled 70–90% of network wealth at market tops.
- Today, STHs hold around 40%, signaling less speculative activity.
Technical Analysis and Price Outlook
Technical indicators suggest Bitcoin may be at a pivotal turning point. Relative Strength Index (RSI), below the 50 level, indicates sellers retain minor influence, while Hourly MACD (Moving Average Convergence Divergence) lost momentum in bearish territory.
Immediate resistance is observed near $84,000, with a critical obstacle at $85,000. Breaking through the $85,550 level (representing a 50% Fibonacci retracement) could push Bitcoin toward $86,800 or even $88,500.
Conversely, failure to surpass $85,000 might trigger fresh selling pressure, driving BTC toward support levels of $82,200, $81,350, and the psychologically significant $80,000 mark.
