The cryptocurrency market has seen a significant decline today, with Bitcoin dropping below the $87,000 level, returning to previous levels, while other cryptocurrencies have fallen from their previous highs.
⚡ Reasons for the drop:
Rising trade fears between the United States and Canada after Trump's threat to impose 100% tariffs on Canada due to deals with China.
Financial bleeding in the market exceeded $100 million upon announcement.
Canada's response that it does not intend to make any deal with China amid current tensions.
🏛 Impact of the U.S. Government:
Likelihood of government shutdown due to delays in passing the federal budget.
Any shutdown could delay important crypto policies like the CLARITY Act, which could increase market downturn.
📊 Crucial economic events this week:
Market reactions to Trump's threat to Canada – tonight
Likelihood of government shutdown at 75% – tonight
Consumer confidence data for January – Tuesday
Federal Reserve interest rate decision + press conference – Wednesday
Following news of giant companies and their impact on the market
Note: If inflation data comes in high, pressure on Bitcoin may continue, while any positive news could provide the market a chance to rebound.
🔮 Conclusion:
The digital market is experiencing a downturn and turmoil, but it may see a quick rebound upon positive news. Following economic and political news has become essential for any investor.
