Bitcoin’s (BTC) value remained unpredictable as Wall Street opened on March 4, with the crypto markets under pressure due to the impact of US trade tariffs. On Bitstamp, BTC/USD hit new local lows of $82,037, which then rebounded, although it was still down by over $10,000 compared to the previous day’s high, closing near $85,000.
The introduction of US tariffs against Mexico and Canada negatively affected Bitcoin and other cryptocurrencies, with plans for a US strategic crypto reserve remaining uncertain ahead of the upcoming White House Crypto Summit scheduled for March 7. Trading firm QCP Capital indicated that the current sell-off was intensified by President Trump’s renewed push for tariffs on Canada, Mexico, and China, which reinforced investor worries about growing trade tensions.
QCP Capital further highlighted that stocks were also struggling due to tariff pressures, a situation that is likely being closely monitored by President Trump. The firm suggested that the current downturn could increase pressure on Trump, particularly considering the significant support and donations he received from the crypto community during his campaign.
However, Mosaic Asset, another trading firm, adopted a more optimistic outlook on the performance of risk assets in the near term. Despite bearish investor sentiment and oversold breadth, the firm believes conditions are ripe for a rally.
The firm pointed out that, historically, the last two weeks of February have been among the most negative for the S&P 500, but March has consistently been the best month during the first half of the calendar year over the past 15 years.
This outlook aligns with existing expectations for Bitcoin. Julien Bittel, Head of Macro Research at Global Macro Investor, predicted a recovery for Bitcoin in March due to shifting macroeconomic conditions. He attributed the current market situation, especially in crypto, to the tightening of financial conditions in Q4 of the previous year.
Meanwhile, the US dollar index (DXY) hit 12-week lows the day before, experiencing a modest relief bounce of its own.
Investors are advised to conduct their own research when considering any investment or trading decisions, as every move involves potential risks. This article is not intended to provide investment advice or recommendations.
