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Why Are Bitcoin and Altcoins Falling? Pay Attention to April 2nd! - Coin Bulletin
Bitcoin (BTC), and altcoins continue to get dumped while the source of the drop and the date to watch out for has been revealed.
Bitcoin started to decline after rising to $88,700 last week, and has now dropped to $81,200. Recent price movements are seen as part of a broader risk aversion trend. Investors are awaiting the impact of U.S. President Donald Trump's reciprocal tariffs, which will come into effect on April 2nd. The unexpectedly high U.S. Personal Consumption Expenditures (PCE) data released on Friday caused this movement to accelerate. Investors believe that this high inflation data could have negative effects on the American economy, leading to a flight from risky assets.
Details of Trump's new tariff policy continue to have an impact on the markets. According to a report by Wall Street Journal (WSJ), Trump wants his policy to be "big and simple." This means that a broader move will be made compared to previous plans. Recently, Trump's advisors indicated that they are considering implementing global tariffs of up to 20% on all of the U.S.'s trading partners. This move is expected to target major trading partners worldwide, and its impact seems likely to reflect on the cryptocurrency markets as well.
Cryptocurrency markets often reflect the reactions of traditional financial markets. Especially Bitcoin and altcoins continue to lose value under the influence of the US trade policies and high inflation data. Investors are adopting a more cautious approach as global risks increase.
In light of these developments, the impact of the customs tariffs that will come into effect on April 2 may further negatively affect the prices of Bitcoin and altcoins.