Bitcoin, buoyed by post-election euphoria, reaches a peak of $108,000 before falling below $80,000.

Donald Trump's return to the presidency reopens the file on trade tensions. His tariff decisions target strategic partners like Canada, Mexico, and China.

Bitcoin price rose to a peak of $108,000 on Friday, buoyed by post-election euphoria, but fell below the $80,000 level as global economic instability and increasing trade tensions fueled heightened volatility.

Donald Trump’s return to the presidency has reopened the file on trade tensions, with his tariff decisions targeting strategic partners like Canada, Mexico, and China, already impacting the U.S. stock market, which has lost $2 trillion.

Lawrence Summers, former Treasury Secretary, described these measures as “poorly designed” in a post on platform X (formerly Twitter) on March 5.

This uncertainty has immediate consequences for bitcoin, as several key elements are intermingling.

Reactions from market participants are mixed, with trading firm QCP Capital, based in Singapore, highlighting that “macroeconomic conditions continue to influence bitcoin’s trajectory, which remains closely tied to stock indices.”

However, some investors believe that bitcoin could benefit from a weakening dollar. Eugene Epstein, an officer at Moneycorp, stated that “if trade tensions cause inflation, the flight to crypto could accelerate.”

The market remains under pressure, however, with political and economic uncertainty blocking investors’ decisions as they hesitate between taking profits or anticipating a bullish recovery.

While some investors had hoped for a lasting bullish market, capital flight reflects a more mixed sentiment.

After Trump’s election, Spot Bitcoin ETFs saw record inflows, with over $10 billion invested.

But since February, this trend has reversed. Outflows are multiplying, a sign that confidence is waning in the face of economic uncertainty.

Bob Wallden, head of trading at Abra, further noted that “tariffs are just a smokescreen.” He stated that “Trump uses tariffs as a negotiation lever, but they do not dictate the trajectory of cryptos. What truly matters is the budget tightening and American fiscal policy.”

In other words, the central question remains the availability of liquidity in financial markets. Less money in circulation means fewer investments in risky assets, which could hinder bitcoin’s rise.

The future of the crypto market will largely depend on the evolution of monetary and budgetary policies. If uncertainty persists, bitcoin could remain under pressure, just like stocks. For the moment, caution prevails. Investors oscillate between wait-and-see approaches and strategic repositioning, while bitcoin, true to its volatile nature, continues to evolve according to economic announcements.