The price of Bitcoin has sharply dropped below $110K, in a latest move with it falling as low as $108,000 at the time of publishing. The quick downtrend in Bitcoin price has come just a day after it marks an all-time high of $111,970 on May 22.
While the current market seemed to be bullish throughout the week, this drop has caused panic among investors and it is likely to drive huge selling pressure ahead of the weekend.
With this drop, every indicator and technical analysis are refreshed, with Bitcoin now looking at a new support level above the $100K mark.
Why is Bitcoin Price Dropping?
The latest drop in Bitcoin price coincides with the recent TruthSocial post from the U.S. president Donald Trump, which proposes a 50% tariff on EU goods. This move has introduced significant market uncertainty and huge volatility across world markets.
If implied, such tariffs could disrupt global trade and create volatility in financial markets, which also impacts Bitcoin’s price. Earlier this year, similar tariffs on China led to Bitcoin dropping below $76,000, indicating that trade tensions can trigger sell-offs in crypto markets.
Also read: Saylor’s Strategy Plans $2.1B Stock Sale to Buy More Bitcoin
