The global financial markets are experiencing turmoil due to US President Donald Trump's latest tariff announcement, causing a decline in the crypto market. The total market cap has dropped by over 8% in the last 24 hours, with Bitcoin suffering one of its steepest drops in months. Altcoins have also seen double-digit losses. If the tariffs are implemented, it could lead to inflationary shocks, impacting the Federal Reserve's rate cuts and potentially deepening the sell-off in crypto markets. The market's reaction to tariffs will depend on inflation, sentiment, and positioning. Institutional investors may rethink their allocations, and increased volatility could result in extreme price swings for Bitcoin. The scale of the crypto market today makes it more vulnerable to broader disruptions compared to the last major trade war in 2018. Analysts have mixed opinions but suggest that the current downturn may not last much longer and could be followed by a period of relative calm. Technical analysts identify potential inflection points that could lead to a bounce in Bitcoin's price, while sentiment indicators suggest a reversal is likely in the near future. However, caution is advised, as the broader picture remains uncertain and traders should not invest more than they can afford to lose.



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