Bitcoin (BTC) Navigates Sharp Volatility, Renewed Selling Pressure as Financial Markets Face Deep Uncertainty

Global investors are reacting to rising geopolitical tensions and erratic policy moves, particularly from US President Donald Trump

Financial markets are navigating sharp volatility and renewed selling pressure as investors continue to grapple with deep uncertainty. Global investors are reacting to a confluence of factors, including escalating geopolitical tensions, erratic policy moves, particularly from US President Donald Trump, and the lingering effects of the coronavirus pandemic.

Among the key developments that have put markets on edge is President Trump’s latest announcement of new tariffs and taxes. In a statement on April 1, Trump said that he plans to introduce “reciprocal” taxes on goods and services from France, Germany, Spain and Italy in response to what he described as “unfair” economic practices by those nations.

The move comes amid ongoing trade disputes between the US and several other countries, which have escalated in recent months. President Trump has repeatedly threatened to impose tariffs on goods imported from China, Mexico and other nations in an effort to reduce the US trade deficit and protect domestic jobs.

These threats have put traders on high alert, as any escalation in trade tensions could have significant implications for global markets. Tariffs and other trade barriers can disrupt supply chains, raise prices for consumers and businesses, and ultimately slow economic growth.

In addition to tariffs, President Trump has also signaled that he may take aim at sales tax revenue. In his statement, Trump said that he is planning to impose a tax on goods sold in the US that will be equal to the sales tax imposed by the foreign nation where the goods are produced.

This move is seen as a direct response to France’s planned 3% tax on digital services revenue generated by US tech giants such as Google, Apple and Facebook. The French government has said that the tax is necessary to ensure a fair contribution from multinational companies to the country’s economy.

However, President Trump has argued that the tax is discriminatory and will ultimately harm consumers in the US. He said that he is planning to introduce a tax on goods sold in the US that will be the “same rate and manner” as the sales tax imposed by France.

This move is likely to be met with resistance from US companies, which sell a large volume of goods in France and other European countries. The move could also lead to retaliation from foreign governments, who may decide to introduce taxes on US goods in response.

Overall, President Trump’s latest policy announcements have heightened uncertainty in financial markets and could have implications for risk sentiment toward crypto assets like Bitcoin.

Despite the turbulence, many analysts are now noting that the current correction may be part of a broader, healthier market cycle. They argue that the noise from global headlines may be distracting from what could be a more constructive reset in price action.

Indeed, looking at underlying market data reveals a shift in momentum that may favor long-term bulls. According to new insights from CryptoQuant, the average selling pressure on top exchanges has dropped sharply — from 81,000 BTC per day to just 29,000 BTC.

This substantial decrease suggests that the market has successfully absorbed waves of profit-taking following Bitcoin’s (BTC) break above $100,000. As a result, analysts are calling this phase the “zone of asymmetric demand,” where sellers have dried up and buyers appear more confident in current price levels. A new equilibrium may be forming.

Bitcoin is facing serious pressure as it trades just above a critical support level around $81,000. Bulls are on high alert, as a breakdown below this zone could trigger intensified selling and a deeper correction.

The broader financial landscape remains tense, with uncertainty driven by geopolitical shifts and economic policy risks. In the US, President Donald Trump has been a key driver of market volatility due to his unpredictable behavior and policies.

The president’s latest announcement of new tariffs and taxes is being closely watched by investors, who are concerned about the potential for broader economic fallout and trade instability.

Earlier this week, President Trump announced plans to introduce “reciprocal” taxes on goods and services from France, Germany, Spain and Italy in response to what he described as unfair economic practices by those nations.

These moves are seen as part of a broader pattern of escalating trade tensions, which began with the Trump administration’s decision to impose tariffs on steel and aluminum imports in 2018.

The US has since imposed tariffs on billions of dollars worth of Chinese goods, in response to what the Trump administration says is unfair trade practices by the Chinese government, including forced technology transfer and intellectual property theft.

China has retaliated with tariffs of its own, and the two economic superpowers have been locked in a trade war for over a year.

President Trump has also threatened to impose tariffs on Mexican goods if the Mexican government does not do more to stop migrants from reaching the US border.

These threats have put traders on edge, as any escalation in trade tensions could have significant implications for global markets. Tariffs and other trade barriers can disrupt supply chains, raise prices for consumers and businesses, and ultimately slow economic growth.

In addition, President Trump’