Bitcoin Starts to Gain Momentum Despite Intensifying Trump Trade War

Despite growing trade tensions between the U.S. and Canada, Bitcoin’s price has risen above $88,000, reflecting the market chaos.

The ongoing trade dispute, fueled by U.S. tariffs and Canadian retaliations, has created global instability, leaving investors unsure about Bitcoin’s future trajectory.

Trump’s warning of additional tariffs if Canada escalates its trade measures has intensified the conflict. Meanwhile, Canada’s 25% tariff on U.S. imports has led to harsh criticism from Prime Minister Trudeau, who vowed to protect Canada’s economy. Other countries, including Mexico and China, are also adjusting their trade policies, further complicating the global economic environment.

Bitcoin’s price has been erratic, briefly dipping below $82,000 before bouncing back to $88,313. Despite the rebound, Bitcoin has dropped 7% in the last 24 hours and 16% over the past month. The uncertainty in traditional markets is driving some investors towards crypto, yet Bitcoin remains volatile, and its future price movement is uncertain.

Ethereum and Solana followed Bitcoin’s pattern, experiencing declines after a brief surge. The broader crypto market’s instability mirrors the uncertainty sparked by geopolitical events.

As the White House prepares for a Crypto Summit, investors are keenly awaiting potential regulatory or tax policy changes. Rumors of a possible elimination of capital gains tax on U.S.-based cryptocurrencies could send Bitcoin’s price soaring, potentially crossing the $100,000 mark. The outcome of the summit and the ongoing trade conflict will likely determine Bitcoin’s next move.