EU Tariffs Intensify Market Volatility
The European Union’s latest set of retaliatory tariffs on $28 billion of US goods has added macroeconomic uncertainty. Crypto experts predict that the move could lead to increased volatility of Bitcoin prices, with a potential slide below the crucial $75,000 support level.
The European Commission slapped the counter-tariffs on March 12, in retaliation for US President Donald Trump’s imposition of a 25% tariff on imports of steel and aluminum. This heightened trade tension can trigger renewed anxieties about a global trade war, putting further pressure on financial markets, including cryptocurrencies.
Market Reaction to Trade War Concerns
Counter tariffs are not a positive sign since they suggest a potential reversal from the other side again,” said Marcin Kazmierczak, co-founder and COO of blockchain oracle firm RedStone.
Kazmierczak warned that Bitcoin can come back to $75,000 but also stated that “since stablecoins and RWAs [real-world assets] are still at all-time highs, it can rebound.”.
Other analysts predict that Bitcoin will experience a near-term retracement below $72,000 as part of an overall “macro correction” prior to the next move up in the ongoing bull cycle.
Other Market Forces Operating
Ryan Lee, Bitget Research’s head analyst, explained that import tariffs are not the sole force behind Bitcoin’s price action.
The prices are connected to overall economic conditions but also by forces beyond trade policies. Institutional adoption on a global basis, regulatory reform, and high utility make it stronger than traditional financial instruments,” he added.
Global Uncertainty May Drive Markets Through April 2
Europe introduced its tit-for-tat tariffs on the same day when Trump’s 25% increase in the tariff on all steel and aluminum imports took effect. The EU’s tariff suspension on US products runs out on April 1, and the new tariffs are to take full effect by April 13.
Nansen principal research analyst Aurelie Barthere cautioned that crypto and mainstream markets may still remain uncertain until April 2.
Tariff noise will continue until after April 2, as tit-for-tat announcements and negotiations satiated risk appetite,” she explained.
She added that even after volatility in recent times, signs of stabilization were seen in the major US equity indices and Bitcoin, with both hitting the lower extremes of their respective Relative Strength Index (RSI) readings.
Trump also threatened to “substantially increase” taxes on Canadian automobiles into the US from April 2 unless Canada reduces some of its trade barriers, further tightening the noose on the world economy.
