Question #86 ·
How did the U.S. tariff announcement in October 2025 affect Bitcoin’s value?
- It increased Bitcoin mining difficulty proportionally to tariff severity announcement
- It caused Bitcoin to fall by thirteen percent within hours Right answer
- It led Bitcoin transaction fees to drop by avoiding sell-offs
- It triggered Bitcoin price to double in value after announcement
Why is this the correct answer?
This is correct because President Trump’s announcement of steep tariffs triggered risk-off sentiment across financial markets, prompting many investors to sell assets, including Bitcoin. In beginner terms, when a big economic event shakes confidence, people often sell off volatile assets quickly, causing sharp price drops like the 13% fall in hours after the tariff news.