Bitcoin and Crypto Could Fall Further as Donald Trump’s New Actions Rattle Global Markets

The prices of various cryptos have taken a bad hit in recent weeks and things could even get better soon. That fragile mood sits at the center of a wider debate about regulation, global liquidity, and political pressure in the United States. Market structure talks in Washington now collide with macro risks abroad, and this mix keeps Bitcoin traders cautious even after brief rebounds.

Crypto analyst Crypto Tice argues that the latest White House discussions may not deliver the optimism many expected. The focus of the meeting sits on stablecoin rules and the broader crypto market structure bill. Banks push to remove yield from stablecoins, while crypto firms defend yield as a core feature of digital finance.

That conflict matters because traditional banks offer returns near 0.5%, while stablecoins often sit close to 4%. A wide gap like this threatens to pull trillions of dollars away from bank deposits. Policymakers now face a deadline to settle the dispute. Failure to reach an agreement could delay regulation until after the 2026 midterm elections, which would extend uncertainty across the digital asset space.

Crypto Tice believes this delay could weigh on sentiment across Bitcoin and altcoins. Charts still lean weak, and small upward moves may not confirm a full recovery. His base case allows room for Bitcoin to fall far below its previous all time high before a true bottom forms. Panic conditions often appear near major turning points, and current price behavior has not shown that level of stress.

Trump Policy Shock And Macro Risks Cloud BTC Price Direction

Another perspective comes from Crypto Chiefpriest, who links recent political actions from Donald Trump to broader financial instability. New tariff threats tied to Iranian oil trade could reshape global capital flows and place pressure on the dollar system. Tension between the White House and the Federal Reserve also introduces uncertainty around interest rate policy, which remains one of the strongest drivers of Bitcoin price cycles.

Additional geopolitical and fiscal concerns deepen the risk environment. Japan continues large-scale bond selling, and tariff disputes could return to the center of global trade. Each factor tightens liquidity conditions that speculative assets usually depend on. Bitcoin often reacts sharply when global money becomes scarce, so traders monitor these signals closely.

Crypto Chiefpriest frames the moment as structural disruption across several institutions at once. Even without dramatic language, the core message points to instability during a sensitive period for digital markets. Political confrontation, regulatory delay, and macro tightening rarely support strong rallies in BTC price.

Why Bitcoin Market Sentiment Remains Fragile Despite Short Bounces

Short rebounds in Bitcoin price can create the illusion of strength, yet broader context still leans cautious. Regulatory clarity has not arrived, global liquidity faces pressure, and political uncertainty continues to grow. Each piece alone might seem manageable. Together they form a difficult environment for sustained upside.

Bitcoin historically recovers after deep fear replaces hope. Current sentiment shows concern, though not full capitulation. That difference keeps analysts careful about calling a final bottom. Volatility may continue until clearer policy direction and stronger liquidity return to the system.

Read Also: Why Is NKN Price Pumping Right Now? Is It Too Late To Buy?

Digital assets remain sensitive to forces outside the crypto industry itself. Government policy, bond markets, and banking competition now shape the next phase of the cycle. Observers who track only short term price moves may miss the larger story unfolding behind the charts.

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Temitope Olatunji
Temitope Olatunji

Temitope is a seasoned writer with over four years of experience. He specializes in Web3 and FinTech topics and enjoys creating content in these areas. He holds both a bachelor's and master's degree in Linguistics. When not writing, he trades forex and plays video games.

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