BTC Heavily Sold
Bitcoin prices continue to plunge heavily lower ahead of the weekend. Selling has been amplified as Trump confirmed that he will press ahead with delayed tariffs on Mexican and Canadian goods, actioning a 25% tariff next week once the one-month suspension order expires. Additionally, Trump said he will impose a further 10% tariff on Chinese goods. The news has fuelled a fresh uptick in USD this week causing widespread selling across risk markets, weighing heavily on crypto.
Texas BTC Reserve News
Bitcoin futures are now down almost 30% from YTD highs, trading levels last seen in November. The sell-off comes despite news yesterday that the Texas Senate Banking Committee saw a full majority vote in favour for advancing a bill to add Bitcoin as an asset to state reserve buying. The bill will now move to the Senate floor and if passes, means that the Texas sovereign wealth fund will be able to purchases Bitcoin with part of the $24 billion it holds in reserve. With around a dozen other states exploring similar options, if the bill is successful this could mark a significant milestone for Bitcoin, increasing the likelihood of an eventual government Bitcoin reserve being established.
Bearish Risks
For now, however, sentiment remains heavy and risks remains skewed towards further losses while USD continues to gain. The only near-term hope for Bitcoin is an shock U-turn from Trump on trade ahead of these tariffs being implemented next week.
Technical Views
BTC
The breakdown below the bull channel and $91,750 support is now gathering steam with the market rapidly approaching a retest of the $74,655 breakout area. With momentum studies bearish, focus is on a continuation lower with the $74,655 level now a major pivot for bulls to defend to have a chance of recovering near-term.
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With 10 years of experience as a private trader and professional market analyst under his belt, James has carved out an impressive industry reputation. Able to both dissect and explain the key fundamental developments in the market, he communicates their importance and relevance in a succinct and straight forward manner.