Bitcoin Drops Below $82,000 Due to Trump’s Trade War

Bitcoin’s price slid below $82,000 on Monday as cryptocurrency markets mirrored big drops mostly in US markets, with investors reacting to rising inflation concerns and escalating trade tensions caused by Donald Trump’s trade war on other countries. Ethereum followed the flagship coin as it tumbled to $1,780, while XRP dropped to $2.13, according to CoinGecko data. Since hitting its all-time high of $108,790 last year, BTC has lost almost $27,000 in value to date. The downturn comes after the US Commerce Department reported a sharper-than-expected rise in inflation. The inflation data has fueled uncertainty ahead of the US Federal Reserve’s next moves and the upcoming April 2 rollout of reciprocal tariffs under President Donald Trump’s new trade policies. Stock futures also reflected the broader market unease, with the S&P 500 and Nasdaq-100 each falling about 0.7 percent to 0.8 percent in early trading, while Dow futures dropped 0.55 percent. Barclays warned that the tariffs, part of Trump’s $600 billion revenue drive, could impact up to 25 countries, with key sectors like automobiles, pharmaceuticals, and semiconductors facing the brunt of the measures. Investor sentiment has weakened sharply, with The Kobeissi Letter reporting a 20-point drop in consumer confidence to 57, the lowest reading outside a formal recession. Analysts expect inflationary pressures to accelerate. Amid this backdrop, crypto markets remain volatile, with large institutional investors pulling back from riskier assets. Bitcoin continues to show short-term bearish correlations with equities, and make touch $80,000 in April if current trends persist.