Bitcoin’s price has plunged below $100,000 due to additional tariffs imposed by US President Donald Trump on imports from Canada, Mexico, and China. This is the first time Bitcoin has fallen below this level in nearly a week, as global markets respond to recent trade concerns.
According to a White House statement, the duties include a 25% rise on Canadian and Mexican imports, as well as a 10% increase on Chinese goods. The White House presented the move as an effort to resolve trade imbalances and prevent criminal activities like drug trafficking from harming the US economy. However, the decision has already resulted in swift retaliation from concerned states.
— Donald J. Trump (@realDonaldTrump) February 1, 2025
Shortly after the announcement, Canadian Prime Minister Justin Trudeau levied a 25% tariff on US goods worth more than $100 billion. Meanwhile, China’s Ministry of Commerce has committed to disputing the levies in the World Trade Organization while drafting countermeasures. Mexico, too, is taking its own economic measures to preserve its national interests.
The bitcoin market, which is very susceptible to macroeconomic factors, has reacted with volatility. Bitcoin fell to $99,111 shortly after the news broke, and it is currently trading around $99,540. According to market data, nearly $22.7 million in long bets were liquidated in the last few hours.
The cryptocurrency world has divided its response. Some analysts believe Bitcoin’s latest slump is a temporary consolidation, while others worry that protracted trade tensions may lead to additional declines. Crypto Capital Venture’s Dan Gambardello downplayed concerns that the tariffs would mark the end of Bitcoin’s bull run, pointing to continued institutional accumulation. However, Adam Cochran, a partner at Cinneamhain Ventures, asserted that Bitcoin’s inextricable link to traditional markets could potentially suffer during an economic collapse.
As global tensions build and inflation concerns grow, investors remain wary of how trade policies may affect the future of cryptocurrencies. With central banks considering prospective rate hikes, the cryptocurrency market is bracing for further volatility in the coming weeks.
