The crypto market continues to be in a period of uncertainty related to the Trump administration’s tariff policy. Swyftx analyst Pav Hundal warns that if the situation does not change, Bitcoin could fall below the $100,000 mark.
The Impact of Tariffs on the US Economy
US policymakers may delay monetary easing until they receive accurate data on the impact of Trump’s tariffs on the economy. This could lead to a slowdown in economic growth and an increase in unemployment.
The US International Trade Court prevented Trump from imposing some tariffs on May 28, but the president still doubled tariffs on steel and aluminum to 50%. This situation creates additional uncertainty in the markets.
Uncertainty and Its Consequences
Political uncertainty could negatively affect investor sentiment and lead to a drop in Bitcoin prices. Markets are waiting for clarity and stability to make informed decisions.
US Macroeconomic Situation
The situation also affects the achievement of the 2% inflation target, which is an important benchmark for the Federal Reserve. Uncertainty threatens this target, and the Fed finds itself at a macroeconomic crossroads.
Possible Scenarios for Bitcoin
However, the situation may change for the better. The end of tariff saber-rattling could lead to Bitcoin rising to $120,000 as early as June. Bitfinex analysts suggest that Bitcoin could reach new all-time highs above $115,000 in July if institutional investment continues to flow in and weak US employment data emerges.
However, investors should remember that the cryptocurrency market remains high-risk, and decisions should be made taking all factors into account.
