Bitcoin Dipped Below $77,000 Overnight Before Recovering to $80K

Bitcoin tumbled all the way to $76624.25 late last night, a 4-month low, before later recovering.

The price of bitcoin dipped below $77,000 overnight before making a modest recovery to $80K in the morning.

The cryptocurrency slid to a 4-month low of $76,624.25 by 00:18 CET on Wednesday, according to the latest data from CoinMarketCap.

The entire cryptocurrency market has now lost more than a $1 trillion in value since mid-December 2024, according to the latest CoinMarketCap data.

At the time of writing, bitcoin was valued at $80,645.13, showing a slight increase of 0.66% over 24 hours and a decline of 2.56% over the past week.

The 24-hour trading volume reached $59.56 billion, a significant increase of 23.40%, indicating heightened trading activity.

Bitcoin’s market capitalization currently stands at $1.58 trillion, showing a slight rise of 0.04% from the previous day.

In other developments, bitcoin’s market dominance has seen a slight uptick to 62%, showing a 0.36% increase over 24 hours.

Futures markets show a total open interest of $46.05 billion, presenting a decrease of 0.72% from yesterday.

Furthermore, in terms of liquidations, the total liquidated in the past 24 hours amounts to $260.97 million, with long positions taking the brunt at $185.50 million compared to $75.48 million in short positions.

Trumps Slaps 50% Tariff on Canadian Steel

President Donald Trump announced on Tuesday that his administration will be increasing tariffs on Canadian steel and aluminum imports by an additional 25%, taking the total tariffs to 50%.

Trump stated that he was imposing the tariffs in response to the Ontario government’s 25% tax on electricity exports to the U.S., which was announced by Premier Doug Ford in February. The tax came into effect on Monday.

The price of bitcoin showed a slight dip with the announcement of the tariffs.

Earlier this year, Trump’s administration imposed a 25% tariff on steel imports and a 10% tariff on aluminum imports from Canada, Mexico and the European Union.

These tariffs were part of Trump’s broader strategy to reduce the trade deficit and protect American jobs. However, the tariffs have sparked protests from businesses and consumers, who say they will lead to higher prices and job losses.

In February, Canada announced a retaliatory tax of 25% on certain U.S. products, including wine, fruit juice, chocolate, corn syrup and peanut butter, in response to the tariffs imposed by the Trump administration.

The Canadian government also announced plans to impose tariffs on an additional $4.3 billion worth of U.S. goods if the Trump administration does not cancel the tariffs on Canadian steel and aluminum.

The two presidents are set to meet at the G20 summit in Japan later this month. It is possible that they will discuss the tariffs during their meeting.

BlackRock Issues a Warning About Trump’s Policies

Speaking at the Economic Club of New York on Wednesday, Blackrock CEO Larry Fink issued a warning about Trump’s trade policies.

“I think if we all are becoming a little more nationalistic - and I'm not saying that's a bad thing, you know, it does resonate with me - that it's going to have elevated inflation.”

Higher inflation would lower the prospect of a cut in interest rates by the Federal Reserve, which would impact the price of bitcoin.

Price Outlook

The convergence of heightened trading activity, inflationary concerns due to Trump’s trade policies, and significant liquidations suggests that bitcoin may continue to experience volatility in the short term.