Bitcoin Price Plunges Despite Pro-Crypto U.S. Government

WASHINGTON, DC - FEBRUARY 13: Secretary of Commerce Howard Lutnick speaks alongside U.S. President ... [+] Donald Trump after Trump signed an executive order on tariffs (Photo by Andrew Harnik/Getty Images)
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Bitcoin’s price hit a three-month low this week sparking questions about why its value is dropping despite the U.S. government being the most pro-bitcoin government in history.
The Trump administration’s tariffs, paired with the SEC’s more hands-off approach toward crypto regulations, has caused investors to panic. As a result, the market is experiencing a significant sell-off.
Global Trade Tensions and Tariffs Drive Bitcoin’s Sharp Decline
The backdrop for this decline is a convergence of global trade tensions and a series of regulatory shifts that have stirred uncertainty.
U.S. President Donald Trump’s announcement of renewed tariffs on Mexico, Canada, and China, alongside broader economic concerns such as weak consumer sentiment, has caused a sharp drop in investor confidence.
The 25% tariffs on European Union goods and Chinese imports have stoked fears of a global trade war. Furthermore, disappointing economic indicators, such as low consumer confidence, have intensified the risk-averse sentiment among investors, putting additional pressure on bitcoin's price.