Key Takeaways:
- Bitcoin falls below $100K after Trump imposes new tariffs on imports from China, Canada, and Mexico.
- 25% tariffs on Canadian & Mexican imports, 10% on Chinese goods spark concerns over inflation and economic uncertainty.
- Crypto investors react to market fears, with analysts warning of potential shifts toward traditional assets amid rising inflation risks.
Bitcoin fell below $100,000 for the first time in nearly a week after U.S. President Donald Trump signed an executive order imposing new import tariffs on China, Canada, and Mexico.
The tariffs include a 25% duty on Canadian and Mexican imports and a 10% tariff on Chinese goods, with Canadian energy resources facing a reduced 10% tariff.
— Donald J. Trump (@realDonaldTrump) February 1, 2025
The White House cited concerns over illegal immigration and drug trafficking as reasons for the measures, which have already triggered retaliation from affected countries.
The crypto industry remains divided on the tariffs’ impact, with some analysts warning they could fuel inflation and push interest rates higher.
Historically, such economic conditions have led investors to favor traditional financial instruments over riskier assets like cryptocurrencies.
Bitcoin’s decline reflects broader market uncertainty as investors assess the potential consequences of rising trade tensions and inflation.
While the long-term impact on the crypto market is unclear, for now, economic concerns appear to be driving Bitcoin’s price downward as investors adjust their strategies amid global financial instability.