Trump Tariffs Fuel Bitcoin’s Risk-Off Correction: Exchange Netflows Hint at Short-Term Selling

Bitcoin fell below the $90,000 level as global markets reacted to increased macroeconomic tensions between the United States and the European Union. Investors are keeping a close eye on the latest trade headlines, as renewed tariff threats increase uncertainty about global growth, corporate earnings, and the strength of inflation. When friction between major economies escalates, risk appetite often fades, and crypto tends to feel the impact quickly as traders reduce exposure and reduce leverage.

According to an analysis by XWIN Research Japan, Bitcoin’s recent weakness is consistent with a broader pattern that has been developing since 2025. The report argues that the Trump administration’s renewed tax push has acted as consistent pressure on BTC, largely because rates are influencing multiple pillars of the macro environment at once. Higher taxes can squeeze company margins, disrupt the supply chain, and raise inflation expectations, which complicates the outlook for interest rates and monetary policy.

In this environment, Bitcoin continued to behave more like a risk-sensitive asset than a protective hedge. Instead of attracting safe-haven flows, BTC tends to move in sync with equities amid risk-driven trade waves. As a result, even small bursts of bullish momentum have been difficult to contain when economic uncertainty is high and money is moving around being put in a safe place.

Tariff Risk Keeps Bitcoin Tied to Macro Conditions

A report by XWIN Research Japan explains that several Bitcoin pullbacks between 2025 and 2026 coincide with periods of economic uncertainty caused by rising tariffs and trade tensions. During these episodes, BTC has declined in line with equities, insisting that the market still treats Bitcoin as a risk-sensitive asset rather than a protective hedge. Instead of diversifying under pressure, Bitcoin tends to react as a high-beta instrument when traders scramble to reduce volatility in their portfolios.

Economic risk tends to hit Bitcoin quickly because investor behavior changes quickly. As uncertainty about growth and interest rates increases, capital often shifts to short-term security. In that process, Bitcoin is often viewed as a liquid asset that can be traded temporarily to reduce portfolio risk, rather than a long-term store of value that benefits from risk flows. These variables can increase the downward movement even when the long-term fundamentals remain the same.

Exchange Netflow provides an additional layer of proof. During the correction phases, short spikes in the exchange rate often occur, which is accompanied by strategic repositioning and short-term profit protection. However, this entry did not continue, suggesting the absence of sustained selling pressure.

For now, the bottom line remains that tax-driven economic risks weigh on Bitcoin. If exchange rates stabilize and supply-demand conditions weaken further, that assessment will need to be re-evaluated.

BTC Holds Its Base After Breaking Below $90K

Bitcoin is trading around $88,800 on the weekly chart after a sharp selloff that briefly pushed the price below the psychological level of $90,000. This drop represents a clear reversal of momentum, as BTC failed to hold the mid-range structure that supports price action during the late 2025 consolidation phase. The weekly candle shows heavy pressure, where sellers reject attempts to stabilize above $92,000 and force a retest of lower demand.

Technically, Bitcoin remains stuck in the middle of the best moving averages. The price is still below the blue long-term trend line, which has served as volatile resistance since the break from the $100,000+ region. At the same time, BTC is holding above the green moving average, suggesting that although the market is weak, long-term buyers are still protecting the broad uptrend structure.

This creates a perfect balance: as long as Bitcoin holds above the current support area, the bulls can try to rebuild the base and return to $90,000-$92,000. However, if the volatility widens and the market loses the green trend line, it will expose BTC to a deep correction towards the mid-$80,000s, where previous demand briefly entered during the previous decline.

Featured image from ChatGPT, chart from TradingView.com

Planning process because bitcoinist focuses on delivering well-researched, accurate, and unbiased content. We maintain strict sourcing standards, and each page is diligently reviewed by our team of senior technical experts and experienced editors. This process ensures the integrity, relevance, and value of our content to our readers.