{"id":21559,"date":"2025-02-27T10:50:58","date_gmt":"2025-02-27T08:50:58","guid":{"rendered":"https:\/\/forklog.com\/en\/bitcoin-dips-below-83000-amid-trumps-tariff-announcement-on-eu-goods\/"},"modified":"2025-02-27T10:50:58","modified_gmt":"2025-02-27T08:50:58","slug":"bitcoin-dips-below-83000-amid-trumps-tariff-announcement-on-eu-goods","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/bitcoin-dips-below-83000-amid-trumps-tariff-announcement-on-eu-goods\/","title":{"rendered":"Bitcoin Dips Below $83,000 Amid Trump&#8217;s Tariff Announcement on EU Goods"},"content":{"rendered":"<p>On the night of February 27, the price of the leading cryptocurrency fell below $83,000, only to later recover to $86,000. The catalyst was Donald Trump&#8217;s announcement of <a href=\"https:\/\/www.ft.com\/content\/2f0288f6-3f6a-4334-b666-3f0122981842\">25% tariffs on imports from the EU<\/a>.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>&#8220;The European Union was created to take advantage of the United States. And that goal has been well executed,&#8221;<\/em> he stated.<\/p>\n<\/blockquote>\n<p>The US President announced that tariffs on goods from Canada and Mexico would take effect on April 2, although they were initially planned for March 3.<\/p>\n<p>Following Trump&#8217;s statements, companies in the S&#038;P 500 lost $500 billion in market capitalization.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">The trade war is back:<\/p>\n<p>Minutes after President Trump announced 25% tariffs on the EU, the S&#038;P 500 erased $500+ BILLION of market cap.<\/p>\n<p>Meanwhile, Bitcoin just broke below $84,000 for the first time since November 11th.<\/p>\n<p>What&#8217;s next? Let us explain.<\/p>\n<p>(a thread) <a href=\"https:\/\/t.co\/dE5gFOULOP\">pic.twitter.com\/dE5gFOULOP<\/a><\/p>\n<p>\u2014 The Kobeissi Letter (@KobeissiLetter) <a href=\"https:\/\/twitter.com\/KobeissiLetter\/status\/1894828928570740948?ref_src=twsrc%5Etfw\">February 26, 2025<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>At the time of writing, digital gold is trading at $86,090. The rate of decline over the past 24 hours stands at 3.1%. Among leading altcoins, the drop ranges from 1.1% (Solana) to 5.7% (Ethereum).<\/p>\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" src=\"https:\/\/u1f987.com\/wp-content\/uploads\/1-1449.webp\" alt=\"1-1449\" class=\"wp-image-252858\"\/><figcaption class=\"wp-element-caption\">Daily chart of BTC\/USDT on Binance. Data:\u00a0<a href=\"https:\/\/www.tradingview.com\/chart\/?symbol=BINANCE%3ABTCUSD\" target=\"_blank\" rel=\"noreferrer noopener\">TradingView<\/a>.<\/figcaption><\/figure>\n<h2 class=\"wp-block-heading\">Hedge Funds Turn Bearish<\/h2>\n<p>Presto Research <a href=\"https:\/\/www.theblock.co\/post\/343662\/bitcoin-slides-further-below-85000\">linked<\/a> the sharp decline in Bitcoin in recent days to hedge funds unwinding positions focused on arbitrage of the &#8220;basis spread.&#8221; This is evidenced by <a href=\"https:\/\/u1f987.com\/en\/news\/bitcoin-etf-sees-daily-outflow-exceeding-1-billion\">a record outflow of $1 billion<\/a> from BTC-ETF.<\/p>\n<p>The spread arises from the difference between longs in exchange-traded funds and shorts on <span data-descr=\"Chicago Mercantile Exchange\" class=\"old_tooltip\">CME<\/span> futures.<\/p>\n<p>If the price of the underlying asset falls, the premium on derivatives decreases, prompting ETF sales and increasing pressure on derivative prices. This <a href=\"https:\/\/u1f987.com\/en\/news\/arthur-hayes-predicts-bitcoin-could-drop-to-70000-due-to-etf-outflows\">intensifies negative dynamics<\/a> in the spot market, creating a feedback loop where more funds rush to &#8220;cash out,&#8221; according to 10x Research.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>&#8220;Basis on CME and Binance, when annualized, show no signs of recovery yet. A potential source of relief is the funding rate, which has started to decline following weak macroeconomic data,&#8221;<\/em> explained Presto Research.<\/p>\n<\/blockquote>\n<p>SignalPlus co-founder and CEO Chris Yu noted the weakening implied volatility of Bitcoin during price declines, indicating a retreat of speculators from expectations of near-term growth.<\/p>\n<p>CryptoQuant <a href=\"https:\/\/cryptoquant.com\/insights\/quicktake\/67bef0dc109d3633d5255876-The-biggest-Bitcoin-capitulation-since-August-2024-bottom-is-in\">reported<\/a> that the $1.7 billion capitulation on February 25 was the largest since August 5, 2024. Users closed positions at a loss equivalent to 79,000 BTC, specialists calculated.<\/p>\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" src=\"https:\/\/u1f987.com\/wp-content\/uploads\/2-1031.webp\" alt=\"2-1031\" class=\"wp-image-252859\"\/><figcaption class=\"wp-element-caption\">Data: CryptoQuant.<\/figcaption><\/figure>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>&#8220;While it cannot be said with certainty that new lows are not ahead, current levels already present opportunities rarely seen in the medium-term structure,&#8221;<\/em> analysts wrote.<\/p>\n<\/blockquote>\n<p>The cryptocurrency fear and greed index has fallen to 10 points, the lowest since June 2022, indicating <a href=\"https:\/\/u1f987.com\/en\/news\/fear-and-greed-index-matches-june-2022-levels-amid-market-correction\">a zone of extreme panic<\/a>.<em> <\/em>\u00a0<\/p>\n<p>According to Binance CEO Richard Teng, the dip in digital assets <a href=\"https:\/\/u1f987.com\/en\/news\/binance-ceo-describes-crypto-market-correction-as-a-tactical-retreat\">is temporary<\/a> and will not last long.\u00a0<\/p>\n<p>Earlier, Eric Trump, son of US President Donald Trump, <a href=\"https:\/\/u1f987.com\/en\/news\/eric-trump-advocates-buying-bitcoin-during-market-dips\">urged<\/a> accumulating Bitcoin during the dip. On February 4, he also <a href=\"https:\/\/u1f987.com\/en\/news\/eric-trump-urges-buying-ethereum\">recommended buying ETH<\/a> following a major correction.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>On the night of February 27, the price of the leading cryptocurrency fell below $83,000, only to later recover to $86,000. The catalyst was Donald Trump&#8217;s announcement of 25% tariffs on imports from the EU. &#8220;The European Union was created to take advantage of the United States. And that goal has been well executed,&#8221; he [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"","news_style_id":"","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[480,1146,1205,991,569,1145],"class_list":["post-21559","post","type-post","status-publish","format-standard","hentry","category-news-and-analysis","tag-bitcoin-price","tag-cryptocurrency-market-forecasts","tag-cryptoquant","tag-donald-trump","tag-etf","tag-market-analysis"],"aioseo_notices":[],"amp_enabled":true,"views":"23","promo_type":"","layout_type":"","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/21559","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/comments?post=21559"}],"version-history":[{"count":0,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/21559\/revisions"}],"wp:attachment":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media?parent=21559"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/categories?post=21559"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/tags?post=21559"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}