Bitcoin Dips to Three-Week Low After Trump's Tariff Executive Order Sparks Market Sell-Off

I believe Bitcoin experienced a sharp decline to a three-week low of around $114,000 because the executive tariff order issued by Trump triggered a sell-off in both stock and cryptocurrency markets. This political action created a negative sentiment, leading investors to liquidate their holdings across markets.

The connection between policy decisions and market reactions is evident here. The executive order likely increased uncertainty among investors, prompting a move away from risk assets like Bitcoin, which is often viewed as a hedge or speculative investment. The broader stock market adjustment probably influenced the cryptocurrency market due to heightened risk aversion.

Understanding this reaction helps highlight how sensitive Bitcoin can be to geopolitical and economic policy shifts. Such events tend to induce volatility, especially when they involve significant governmental actions that could impact economic stability or trade relations. This incident underscores the importance of monitoring political developments as they can directly affect cryptocurrency prices.