Bitcoin’s Price Drops Below $110,000: Should You Buy Now?

Bitcoin’s value has gone back over $100,000 for the first time since February, after a 24% rise in price over the last month. Investors are feeling better about the world’s most popular coin again. But is now a good time to buy?

Here’s why Bitcoin’s price is going up again and why you might want to wait out this wave until we know more about taxes and how they might affect the economy.

Why People Are Putting Money Back Into Bitcoin

Bitcoin prices dropped along with stock prices after President Trump announced a bunch of tariffs on goods that come from other countries. Coin value dropped to about $76,000 in early April because of this.

But in the last few weeks, buyers have changed their minds about selling and have been buying stocks and cryptocurrencies again. People hope that the Trump administration will be able to make trade deals with other countries before they hurt the U.S. economy too much.

Like, the government just recently shared more information about a new trade deal with the U.K. This is the main reason why Bitcoin’s value went back over $100,000. Some of the details include a 10% tax instead of a 25% tariff on the first 100,000 cars brought into the U.S. and no tariffs on steel and aluminium.

Plus, the U.S. and China just recently decided to slow down their trade war. For 90 days, the taxes on goods coming from China will go down from 145% to 30% while a trade deal is worked out. In response, China will cut its tariffs from 125% to 10%.

Tariffs don’t have a direct effect on Bitcoin, but buyers have been buying and selling cryptocurrencies based on news about tariffs. At the moment, it looks like some Bitcoin buyers think that the trade war with China will end and that other tariff deals will be made before they hurt the economy.

The recent rise in Bitcoin’s value may not be warranted.

I believe there are good reasons to be hopeful about Bitcoin’s future. Since Bitcoin ETFs came out last year, the cryptocurrency has become much more popular among institutions. The Trump government has also had less strict rules about cryptocurrencies and just a few months ago announced a strategic Bitcoin reserve.

These all seem like good steps towards making Bitcoin a good investment in the long run. But in the short term, prices are likely to change a lot more because of the anxiety about tariffs and the economy as a whole.

One thing is that the U.S. and China still haven’t agreed on a trade deal. There will still be a 30% tariff on imports from China, and that rate could go up or down by the end of the talks, based on how the trade talks go.

No matter what deal is made in the next three months, the Trump administration has shown it is willing to mess with the way the economy usually works. This is bad for the price of Bitcoin because buyers react strongly to any bad economic news, like they did when the tariffs were first announced.

What kind of effects will taxes have on the economy?

Also, higher prices for consumers due to import taxes could still have an effect on the economy, even if big trade deals are made with other countries. For instance, Ford recently said that tariffs will cause the prices of three of its models to go up by as much as $2,000 after some waivers were made for cars.

The main point is that we still don’t know how much taxes will hurt the economy. Some good news has made Bitcoin buyers feel better, but we’ll learn more about how the economy is really doing over the next few months.

If you want to buy Bitcoin, you should wait until all the trade deals with other countries are done. You’ll likely have a better idea in a few months whether the Trump administration is hurting the economy with bad policies or whether the trade mess has been fixed.

The stock market and Bitcoin’s price change a lot because of news about tariffs almost every day. Buying now, when Bitcoin is close to its all-time high, doesn’t seem like a good idea.

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