Bitcoin experienced significant volatility following comments by Trump regarding a 78% reduction in the US trade deficit. In a Truth Social post, Trump claimed the deficit reduction was due to tariffs, suggesting the US could achieve its first trade surplus in decades this year. This announcement led to Bitcoin's price fluctuating, briefly dropping to $65,900 before rebounding to around $67,000.
Analysts suggest that Trump's comments could influence macroeconomic expectations, potentially affecting inflation and interest rates. A stronger US dollar, driven by tariff expectations, may pressure risk assets, including cryptocurrencies like Bitcoin. Market observers caution that if the tariff narrative persists, Bitcoin's recovery could be challenged, while fading political noise might shift focus back to market fundamentals.
Trump's Trade Deficit Comments Trigger Bitcoin Volatility
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