Bitcoin (BTC) decline in the Cryptocurrency Market is very much discussed today. Bitcoin was trading around $ 93,055.60 with a decline of over 6% in 24 hours. Explain that the BTC had fallen by $ 92,500 on the previous day, but after that there was a slight recovery and BTC managed to reach beyond $ 93,000. This decline has become a matter of concern for Bitcoin’s investors, especially when its market cap fell to $ 1.85 trillion. In such a situation, the question is that BTC Value Why did this sudden decline? Let us know two major reasons for this.
US announcement of tariff and impact of trade war
US President Donald Trump has recently announced a 25% tariff on imports from Canada and Mexico and 10% tariff on imports from China. These tariffs will be effective from Tuesday. The US and these countries have a $ 1.6 trillion trade annually and Trump’s decision has created instability in global trade. The increasing concern of trade war and tariffs has increased investors’ tendency to avoid risk. As a result, risky investments such as Bitcoin have declined. Cryptocurrency is usually considered a measure of risk and when the global economic environment is uncertain, investors try to get out of the crypto.
Changes in Bitcoin’s status in El Salvador
El Salvador, the first country to adopt bitcoin as a legal tender, recently changed an important policy. According to which now, BTC will be considered a payment option, but it will no longer be a legal tender. In addition, businesses and public institutions will not need to accept bitcoins and will not be used in tax payment.
The change was made after the EMF pressure by the El Salvador government, which recommended to reduce potential risks due to bitcoin. This change has indicated global investors that the future of Bitcoin is not clear, leading to a fall in prices. For information, tell me that The world’s first Bitcoin Town in El SalvadorAlso, El Salvador President Nayib Bukele is considered a crypto supporter and he has been continuously promoting BTC in the country.
Conclusion
The main reasons for today’s decline in Bitcoin include Global Trade War concerns and El Salvador policy changes. Both these events increased the sense of uncertainty and risk between investors, resulting in a decline in the price of bitcoin. However, it will be seen whether the BTC climbs above its current level in the coming days, but currently there is a tense situation in the Crypto market.
