Bitcoin (BTC) Dropped 8% to $93,101 Earlier This Week, Its Biggest One-Day Fall in Three Months

XRP and ADA had similar recoveries. BTC fell below $100k, after the former U.S. President Donald Trump announced new tariffs on imports from Canada

Bitcoin (BTC) price dropped sharply earlier this week after former U.S. President Donald Trump announced new tariffs on imports from Canada, Mexico, and China. The sell-off in crypto and risk assets began on Monday after the U.S. Dollar Index (DXY) rose 4% since October 2023.

Despite the sell-off, Bitcoin ETFs saw strong demand throughout January 2024. According to data, U.S. spot Bitcoin ETFs attracted a total of $4.94 billion in net inflows. BlackRock’s iShares Bitcoin Trust (IBIT) led with $3.2 billion, followed by Fidelity’s FBTC with $1.3 billion, Bitwise’s BITB at $125 million, and Grayscale’s Mini Trust adding $398.5 million.

Bitcoin (BTC) Price Drops Below $100K After Trump Announces New Tariffs

Bitcoin (BTC) price dropped sharply earlier this week after former U.S. President Donald Trump announced new tariffs on imports from Canada, Mexico, and China. The sell-off in crypto and risk assets began on Monday after the U.S. Dollar Index (DXY) rose 4% since October 2023.

BTC fell below the $100,000 price level after Trump announced the new tariffs in a press conference from Mar-a-Lago. The former President said that the tariffs will go into effect on Monday, March 6 at 12:01 AM EST. The tariffs will be imposed on all imports from Canada, Mexico, and China.

“We’re announcing tonight that the United States will begin imposing tariffs on all imports from Canada, Mexico, and China,” Trump said. “These tariffs will be 5%, 10%, and 15%, respectively. We’re also announcing that we will be withdrawing from the World Trade Organization (WTO).”

Trump added that the tariffs are being imposed in response to the trade imbalance between the United States and its trading partners. He said that the trade deficit with Canada is $35 billion, the trade deficit with Mexico is $100 billion, and the trade deficit with China is $400 billion.

“We’re losing billions of dollars every year with these countries, and it’s not fair to our workers or our businesses,” Trump said. “These tariffs will help to level the playing field and protect American jobs.”

The announcement of the new tariffs sent shockwaves through the financial markets. Stock futures fell sharply, and the crypto market also saw a sell-off. Bitcoin (BTC) price dropped from a 24-hour high of $102,514 to a low of $93,101 earlier this week. This marked the biggest one-day fall in BTC price for three months.

However, BTC price recovered quickly and began rising again on Monday. BTC price reached a 24-hour high of $102,514 earlier this morning, up 48.01% for the month. XRP and ADA also saw similar recoveries, with XRP price up 28.06% to $2.00 and ADA price up 48.01% to $0.7465.

Despite the sell-off in crypto and risk assets, Bitcoin ETFs saw strong demand throughout January 2024. According to data, U.S. spot Bitcoin ETFs attracted a total of $4.94 billion in net inflows. BlackRock’s iShares Bitcoin Trust (IBIT) led with $3.2 billion, followed by Fidelity’s FBTC with $1.3 billion, Bitwise’s BITB at $125 million, and Grayscale’s Mini Trust adding $398.5 million.

Bitcoin ETFs Maintain Stability Despite Sell-Off in Crypto, Risk Assets

Despite the downturn in crypto and risk assets, Bitcoin ETFs recorded robust inflows. According to data, U.S. spot Bitcoin ETFs attracted $4.94 billion in net inflows throughout January 2024.

BlackRock’s iShares Bitcoin Trust (IBIT) led the pack with $3.2 billion, followed by Fidelity’s FBTC with $1.3 billion, Bitwise’s BITB at $125 million, and Grayscale’s Mini Trust adding $398.5 million.

The strong inflows into Bitcoin ETFs come despite the sell-off in crypto and risk assets, which was triggered by former U.S. President Donald Trump announcing new tariffs on imports from Canada, Mexico, and China.

The tariffs will be 5%, 10%, and 15%, respectively, and will go into effect on Monday, March 6 at 12:01 AM EST. The announcement sent stock futures tumbling, and the Dow