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Why Is Bitcoin Going Down? BTC Price Tests 3-Week Low amid Strong Dollar, Weak Wall Street

Author: Content Editor
Bitcoin (BTC) has experienced a four-day decline, dropping nearly 14% at one point due to new tariff plans announced by US President Donald Trump. Wall Street futures contracts also recorded declines, causing panic in the cryptocurrency market and a flash crash in altcoins. BTC is currently trading at $95,700, down 2.3% from Sunday's close. The decline was driven by Trump's announcement of 25% tariffs on Canada, Mexico, and soon the European Union. The US dollar strengthened in response, leading to the inevitable decline in Bitcoin. Despite the decline, Bitcoin still maintains strong support above $92,000, which has acted as a defense line in previous tests. The market remains highly reactive, and investors must position themselves strategically. The decline in altcoins was more severe, with $2.26 billion in leveraged positions wiped out. The fear and greed index fell to 39 points, reflecting fear among cryptocurrency investors. The market downturn is driven by macroeconomic factors and market sentiment, with Trump's trade policies causing panic across traditional and crypto markets. The upcoming Bitcoin halving event, increasing institutional adoption, and the success of spot Bitcoin ETFs provide a foundation for potential future growth, but short-term volatility is expected.

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