Bitcoin Faces Volatility Amid US Debt Suspension and Tariff Concerns

Bitcoin's price is navigating a complex landscape, influenced by the end of the US debt suspension period and escalating trade tariff tensions. On March 12, Bitcoin traded around $82,535, a 22% drop from its January 21 high of over $106,000, coinciding with the US debt suspension period that began on January 20 (Source: March 12). While the end of the debt suspension period on Friday could inject liquidity into the market, analysts caution that unresolved issues like inflation and geopolitical concerns persist. The EU's announcement on March 12 of retaliatory tariffs on $28 billion worth of US goods, effective in April, adds further uncertainty, potentially driving Bitcoin below $75,000 (Source: March 12). Despite short-term correction concerns, long-term forecasts for Bitcoin in late 2025 remain optimistic, ranging from $160,000 to over $180,000. The US government, under President Trump, consolidated its holdings of Bitcoin into a Strategic Bitcoin Reserve, holding approximately 200,000 bitcoins as of January 20 (Source: March 12).