On Thursday, Trump shared his intention to impose tariffs mirroring the rates other nations charge for American goods, potentially escalating global economic uncertainties. This move, coupled with inflation concerns, could lead to increased market volatility as Bitcoin, often regarded as a hedge against fiat instability, shows signs of weakness.

“THREE GREAT WEEKS, PERHAPS THE BEST EVER, BUT TODAY IS THE BIG ONE: RECIPROCAL TARIFFS!!! MAKE AMERICA GREAT AGAIN!!!” said Trump via Truth Social.

Trump’s proposed tariffs aim to address what he calls “unfair trade practices,” targeting countries such as India, Brazil, Vietnam, and others with high import duties on American goods. The reciprocal tariffs are expected to particularly impact developing economies, where the gap between US tariffs and foreign import duties is significant.

While the plan aligns with Trump’s protectionist economic policies, critics argue that tariffs could burden American consumers by raising the costs of imported goods. Furthermore, ongoing trade negotiations with Indian Prime Minister Narendra Modi suggest a potential easing of tariffs on Indian exports, but uncertainty looms over broader trade relations, especially with China and Mexico.

Bitcoin (BTC), often considered a hedge against economic turmoil, crashed massively following the previous tariff announcement by Trump during the beginning of February. The market leader dropped from $102K to $91K in a matter of hours but then shot up to $98K the next day.

At the time of writing, BTC is trading at $95,717, marking a 2.20% decline in the last 24 hours. The cryptocurrency briefly touched a high of $98,083, but selling pressure drove prices lower, with a daily low of $95,336.

Meanwhile, as clear from the daily chart provided by TradingView below, the Relative Strength Index (RSI) for Bitcoin stands at 42.43, below the neutral 50 mark, suggesting strong bearish control. The gradient of the line indicates weakening momentum and a potential move toward oversold conditions in the near future.

Source: TradingView

Historically, when #Bitcoin $BTC dips below the 111-D MA, major price moves follow! That level now stands at $93,400! pic.twitter.com/OST8CcfdLN

— Ali (@ali_charts) February 13, 2025

On the other hand, the MACD indicator remains bearish on the daily chart. The Bitcoin price action is trading below the 20-day EMA of $98,406, reinforcing the short-term bearish outlook. However, analyst Ali Martinez highlighted in a post on X that if Bitcoin dips below the 111-day moving average, which stands at $93,400, the market leader could soar monumentally.