The European Union’s recent announcement of retaliatory tariffs has sparked concerns among crypto analysts about potential volatility in Bitcoin prices. The EU plans to impose counter-tariffs on $28 billion worth of US goods, in response to President Donald Trump’s decision to impose tariffs on steel and aluminum imports.

This move has raised fears of a renewed trade war and its impact on the global economy, which could also affect the cryptocurrency market. Some analysts predict that Bitcoin prices may drop below the critical support level of $75,000, while others believe it may rebound due to the high demand for stablecoins and real-world assets.

However, import tariffs are not the only factor influencing Bitcoin’s price. According to Ryan Lee, chief analyst at Bitget Research, wider economic conditions and factors such as institutional adoption and regulatory updates also play a role in the cryptocurrency’s resilience.

Despite the uncertainty caused by trade tariffs, some analysts see a temporary retracement in Bitcoin prices as part of a larger bull market cycle. They believe that the current correction may lead to a stronger rally in the future.

The EU’s retaliatory tariffs will take effect on April 13, while Trump’s increased tariffs on Canadian cars will come into effect on April 2. This ongoing trade tariff uncertainty may limit both traditional and cryptocurrency markets until a resolution is reached.

In the meantime, investors and traders are advised to closely monitor the situation and its impact on the markets. While some analysts believe that the recent tariff announcements may have a limited impact, others warn that the noise surrounding trade policies could continue until negotiations are finalized.

In conclusion, while the EU’s retaliatory tariffs may cause short-term volatility in Bitcoin prices, the cryptocurrency’s long-term prospects remain strong. With increasing institutional adoption and high utility, Bitcoin is proving to be a resilient asset in the face of global economic uncertainty.