Former U.S. President Donald Trump’s announcement of sweeping global tariffs The financial markets were shocked after Donald Trump became US president, and the brunt was borne by Bitcoin. After Bitcoin plunged beneath US$75k, the market was torn between fear and greed.’
Despite the sharp decline, not everyone is alarmed. Arthur Hayes, the founder of BitMEX, considers the price drop an ideal buying opportunity. In a series of posts, Hayes said he had been buying Bitcoin all day long. He even claimed that Bitcoin’s 60% dominance of the market could reach 70% as other coins are slowing down.
The price of Bitcoin plummeted following an announcement by Arthur Hayes, co-founder and CEO of the BitMEX exchange. Hayes, a major player in the cryptocurrency market, expressed skepticism about the possibility of Bitcoin reaching the $100,000 mark this year. When Hayes sold bitcoin near $100K in December, he said crypto would crash soon because of uncertainty due to Trump. He correctly predicted that the announcement of the tariff would shake investors and prices would fall.
As the price of Bitcoin drops, traders are taking varying actions. Some traders are taking a cautious approach, uncertain if the market has reached its bottom. Petr Kozyakov and people like him are optimistic and still see Bitcoin as “digital gold” and protection against economic instability. For these long-term believers, a dip like this one is nothing unusual.
However, not everyone shares this rosy outlook. The Bitcoin critics say it must develop past its role as that of a mere store of value to stay relevant. Ex-Twitter boss Jack Dorsey, a Bitcoin maximalist, said Bitcoin must have real-world applicability as a payment. He warned that Bitcoin will become useless as newer technologies come along without use cases.
The crazy price fluctuation of Bitcoin may inhibit mainstream adoption, but it has nonetheless gone mainstream in certain sectors. BitPay and other services integrate Bitcoin into their systems, enabling you to use it for everyday purchases. International trade has utilized it in certain areas, demonstrating its practicality beyond mere speculation.
There is a division within the crypto community. As the tariff game marches on, some furiously accumulate while others hesitate. Bitcoin must create real-world offerings to meet growing demand and become a financial system pillar. We will see if Bitcoin can adapt to these needs or lose its relevance.
For the time being, pundits are locked in a raging debate over whether it is a dip or a slump. We will have to wait and see how Bitcoin responds to this new incident.
