The price of bitcoins dropped by 7.2% – from USD 88,526 to USD 82 150 – within four hours after the US President Trump’s President announced on Wednesday. The long decline is in line with a wider market route, which was described as one of the largest tariff packages in current US history.

Bitcoin crashes on the Trump’s tariff bomb

On Wednesday afternoon, the markets were shocked by a wide set of “mutual tariffs”, which, as President Trump claimed, will be applied in 185 countries “at the same time”. Messages sent waves throughout the entire global finance, and the S&P 500 timely contracts apparently dropped $ 2 trillion of market capitalization in less than 15 minutes.

According to To the letter of Kobeissi (by X): “Mutual tariffs are officially here: President Trump has just announced tariffs in 185 countries at the same time, one of the largest tariffs in the history of the US.

The initial press coverage was recorded by 10% of the basic tariff. However, as Trump said, the complexity and scope of the program became more perceptible. He explained that the tariffs would be “mutual”, but the other country set up to half of any rate, which currently imposes on American goods – in many cases they go out significantly except 10% of the base line.

For example, China exploit 67% tariff for a specific import from the United States, which suggests 34% tariff directed to Chinese imports. Meanwhile, the European Union may meet with a 20%tariff. “This is much different than 10% tariffs on the entire board,” Kobeissi noted, adding that these much higher rates cause great variability.

At some point in the announcement of Trump Futures S&P 500 turned from 2% to a 4% decline-a fallen 6% swing in less than 20 minutes. Before the “Make America Bogatys Again” event, the markets maintained these losses, and the Futures Nasdaq 100 indicates a potential 500-point decrease from previous levels.

Bitcoin, which from Monday morning increased by 8.9%, immediately experienced the same confusion, dropping 7.2% of its value. Julio Moreno, head of research at Cryptquant, he noticed Via X: “I hope Bitcoiners learn that Trump’s tariffs are negative for Bitcoin and the US economy.”

He then developed: “Trump introduced too much uncertainty of the global economy thanks to its tariffs. There is enough chances for recession, if the tariffs last long enough. Of course, they have reached the prices of bitcoins and cryptocurrencies, despite the positive regulatory environment and [the Strategic Bitcoin Reserve]. “

Economic projections

While the exact long -term effects remain unclear, several outstanding institutions have already issued forecasts.

JPMorgan analysts alert: “Based on the static, today’s announcement will bring slightly less than $ 400 billion of revenues, i.e. about 1.3% of GDP, which would be the greatest increase in tax on the time of 1968 revenues. We assess that today’s announced funds can increase PCE prices by 1-1.5% this year … This impact could take over the economy approaching the economy. Expenses.”

At the same time, the Kobeissi letter noted that the average tariff indicator in the USA – when a up-to-date set of duties is enforced – may exceed the levels not perceptible since World War II. They warned that targeted revenues from the White House tariff in the amount of $ 600 billion per year could be confident, which suggests that only half of this amount can materialize on the basis of current data. Additional layoffs – such as copper, pharmaceuticals, semiconductors and wood – strengthened the confusion, indicating that the tariffs will vary significantly depending on the sector and country of origin.

UBS, also cited by the Kobeissi letter, raised Inflation alarm: “Breaking: UBS claims that the constant implementation of Mutual Tariffs of President Trump would increase inflation to 5%. This would be the result of price growth in order to” adapt to higher import costs. ” We are on the edge of 5% inflation and negative GDP growth. “

Although President Trump suggested the upcoming “biggest tax reductions in America’s history”, the markets did not affect these messages. He stated that Medicare, Medicaid and Social Security benefits would be saved from cuts, but investors and analysts seemed more focused on direct shock from the tariff package.

During the BTC press it recovered 83 207 USD.

A distinguished painting created from Dall.e, chart from tradingview.com