Bitcoin Drops as Trump’s Tariffs Spark Market Uncertainty

Bitcoin has taken a hit, down about 3% over the last 24 hours, now at $101,530.19. Its market cap has fallen back to $2.01 trillion, a 2.44% drop with 24-hour trading volume climbing 15.20% to $43.41 billion.

Many investors have linked the drop to hopes that Donald Trump’s new tariff policies, which will take effect on February 1, are in the mix. Traders are bracing for potential economic shifts, and financial markets, including cryptocurrency.

According to Glassnode analysts, a significant price cluster ranges from $94,000 to $101,000 with the $98,000 level serving as an important support one. If Bitcoin falls through that level, it may sink to $90,000 or lower.

On the charts, Bitcoin seems to be making a double-bottom. It first fell from $106,000 to $101,000, bounced back to $102,000, and then fell again to $101,000. If it again bounces back to $102,000 and continues, Bitcoin will have another opportunity to break above the resistance at $106,000. But if support breaks, more losses could follow.

With Trump’s tariffs looming, the market is extremely volatile. Some see more downside ahead, while others view the pullback as a perfect buying opportunity.