Donald Trump’s reciprocal tariff announcement recently shook the Bitcoin market. This political decision led to notable volatility. Meanwhile, the crypto ecosystem continues its rapid evolution. Institutional adoption is progressing. Additionally, regulation is taking shape in the US and Europe.
Bitcoin’s Immediate Reaction to Tariffs
A Drop After the Announcement
Following the introduction of reciprocal tariffs targeting all countries, Bitcoin’s price experienced a drop. After a brief surge towards $88,700, the value quickly fell. This reaction shows digital assets’ sensitivity to macroeconomic events. The tariffs are seen as a tax on global trade.
Short-Term Impact on Risk Assets
In the short term, such tariffs can slow international trade. They encourage countries towards economic pullback. Less money then circulates in the global financial system. This situation is generally unfavorable for assets considered risky. However, some analysts debate this effect on Bitcoin.
Long-Term Outlook for Bitcoin and Crypto
Bitcoin as a Global Store of Value
Despite volatility, the perception of Bitcoin as a store of value persists. Bitcoin adoption is progressing globally. Many countries are exploring Bitcoin mining. They use their surplus energy for this purpose. A kind of global race to accumulate Bitcoin seems to be emerging. The United States holds competitive advantages in this area. They have favorable energy policies and low costs. America could thus play a key role in this financial revolution.
Institutional Accumulation Accelerates
Institutional interest in Bitcoin continues to grow. Global Bitcoin ETFs now hold 1.3 million Bitcoin. This represents 6.2% of Bitcoin’s total future supply. Two years ago, this institutional participation was zero. This accumulation trend should logically continue and grow.
Regulatory Advances and Technological Adoption
Key Crypto Bills in the United States
The US Congress is currently examining two important bills. The first concerns stablecoins. The second targets crypto market structure. These laws could be adopted in the coming months. They would clarify the legal framework for companies.
Potential Entry of Tech Giants
Clear regulation would open the door for tech giants. Companies like Apple, Microsoft, or Google could integrate crypto wallets. They would thus gain access to their billions of users. These companies could issue their own stablecoins. They would thereby reduce credit card transaction fees. Tech giants would then become major financial service providers.
Expansion of Crypto Services by Traditional Players
PayPal Expands its Crypto Offering
PayPal continues to integrate cryptocurrencies. The company already offers Bitcoin, Ethereum, Litecoin, and Bitcoin Cash. Rumors suggest the upcoming addition of Solana and Chainlink for its over 200 million US users. Favorable regulation could extend these services globally.
Fidelity Launches Crypto Retirement Plans
Fidelity, an asset management giant, is also innovating. The company is launching Fidelity Crypto for retirement accounts (IRAs) in the US. This offers a tax-advantaged crypto investment option. Fidelity’s clients manage over $6 trillion in assets.
Development of Digital Identity in Europe
A Blockchain-Based Solution
In Europe, crypto innovation is also advancing. PWC Italy and SKC Chain Advisors are collaborating on a major project. They are developing a digital identity solution for the European Union. This solution will use ‘Self-Sovereign Identity’ (SSI) blockchain technology. It will rely on the World Mobile Chain.
Compliance with eIDAS 2.0 Regulation
This project aligns with the new eIDAS 2.0 regulation. This regulation introduces the European digital identity wallet. The solution aims to simplify secure access to digital platforms. It will benefit European businesses and citizens.
Bitcoin Price Technical Analysis
Key Levels to Watch
Technical analysis shows significant resistance for Bitcoin. The level around $96,000 to $96,500 represents a key zone of past activity. It is an important threshold to break for a new rally. On the downside, major support lies in the $68,000 to $70,000 range. The market could trade within this range for some time.
In conclusion, while tariffs create short-term uncertainty, underlying trends remain strong. Institutional adoption, regulatory progress, and technological integration paint a promising future for the crypto ecosystem.
