Bitcoin's Rollercoaster Ride: Tariffs, Trends, and Treasure
Bitcoin is having a tough week, with trade tensions heating up and the price feeling the heat. It dipped below $92,000, but traders warn this might just be the beginning of a bigger drop. Key support levels like $87,000 and $80,500 are being closely watched. If Bitcoin fails to hold these levels, it could be in for a bumpy ride.
Trade War Escalates
The trade war between the US and the EU is back in the spotlight. The US is planning to impose tariffs on several European countries, sending shockwaves through the market. Bitcoin, along with other assets, is already reacting, and traders are bracing for a volatile week ahead. The full impact won't be felt until Tuesday due to the US Martin Luther King, Jr. holiday, but the markets are already showing signs of strain.
Gold and Silver Shine
While Bitcoin struggles, gold and silver are hitting new all-time highs. Some experts believe Bitcoin will follow suit, but the uncertain roadmap for the trade debacle keeps the markets on edge.
Macroeconomic Data in Focus
Beyond tariffs, there's more to worry about. The US macroeconomic data is due for release, and the Fed's rate cuts are fading into the background. Key releases include:
- Personal Consumption Expenditures (PCE) index for November (Thursday)
- Ongoing initial jobless claims
- First revision of Q3 GDP data
These releases will provide traders with a clearer picture of the economic landscape.
Bitcoin's Bullish Momentum
Despite the challenges, Bitcoin's price action is giving analysts reason to be optimistic. Buyers are steadily regaining control, and a new "structurally healthy" uptrend is emerging. This is a welcome change from most of Q4 2025, where downside persisted.
Overall open interest (OI) on derivatives has dropped by nearly 17.5% since October's all-time highs. If this trend continues, it could support a continuation of the bullish momentum.
