Bitcoin Faces Weekend Decline Amid Trade and Economic Concerns

Phyrex posted on X. Over the recent weekend, Bitcoin experienced a notable decline, exacerbated by several economic and trade concerns. U.S. President Donald Trump's dissatisfaction with a trade agreement involving Canada and China has been a focal point, with Trump issuing multiple warnings to Canada. His use of tariffs as a strategic tool has raised market apprehensions about potential retaliatory measures from Canada and China, which could lead to increased market volatility. Additionally, there is speculation about possible U.S.-Japan intervention in the yen's exchange rate, which, while less severe than tariff issues, could impact the arbitrage market, particularly affecting yen-based lending assets. Furthermore, the probability of a U.S. government shutdown has risen, with Kalshi predicting a 78.5% chance due to budgetary issues set to expire on January 31. However, unlike the comprehensive shutdown in October last year, some government departments have secured full-year funding, potentially mitigating the impact. Bitcoin's turnover rate increased significantly over the weekend, indicating growing market panic amid these negative factors. Investors are facing heightened uncertainty, even before the U.S. stock market opens. The upcoming hours will reveal the reactions of Asian investors, followed by those in the U.S. The repeated use of tariffs by Trump as a weapon has historically led to unfavorable outcomes, and the market's negative response may prompt further actions. The situation remains tense as stakeholders await developments.