Bitcoin [BTC] Market Tanks as Mark Carney Replaces Justin Trudeau as Canada's Prime Minister

The crypto market is once again reeling from a sharp sell-off, driven by escalating fears of a looming recession and heightened trade tensions

The crypto market is rolling in the black sea of liquidity and it’s getting worse.

After President Donald Trump reaffirmed his commitment to aggressive economic policies, including tariffs on key trade partners, market uncertainty deepened.

While Trump avoided directly addressing recession concerns in a recent interview with Real Clear Politics, he maintained that his policies are designed to restore economic strength, even if the transition proves turbulent.

Mark Carney replaces Justin Trudeau

Meanwhile, Canada’s political landscape saw a dramatic shift as Mark Carney replaced Justin Trudeau as prime minister, immediately taking a strong stance against Trump’s trade tactics.

In his first speech as the PM, Carney said:

“America is not Canada. And Canada never, ever, will be part of America in anyway, shape or form.”

He added:

“My government will keep our tariffs on until the Americans show us respect.”

This was in the context of Canada imposing 25% tariffs on US consumer goods in retaliation to Trump’s tariffs on Canadian goods.

However, as the PM pointed out, the US has no tariffs on Canada RIGHT now.

Pointing this out, Post Millennial and Substack writer, David Krayden wrote on X:

“25% tariff on imports to Canada = MORE inflation, this is NOT a good idea. It will TRIGGER the 25% Reciprocal tariff from Trump and USA so it is really stupid.

It makes Canada the aggressor and it is what is causing the inflation and triggering the USA tariff. Because the USA tariff is NOT on Canada RIGHT now.”

He further added:

“They are taxing food staples and necessities like fruits, vegetables, meat, and seafood. It is going to cause unrest and hardship for the lower socioeconomic classes.

And it is going to cause a food crisis in the long term if they continue to escalate it.”

Bitcoin crash hits hard

Talking of the crypto market, it faced intense volatility following Carney’s election, with Bitcoin [BTC] briefly dropping below $81,000 before recovering above $82,000.

Mirroring the downturn, altcoins saw steeper declines, with Ethereum [ETH], Ripple [XRP], and Dogecoin [DOGE] plunging over 6%, while lower-cap assets like Injective and Maker faced double-digit losses.

The total crypto market cap, too, shrank by 6% to $2.8 trillion, with leveraged liquidations exceeding $600 million, wiping out $530 million in long positions.

Even as the market attempted stabilization, the latest data shows a further 3.37% decline, bringing the global crypto market cap to $2.71 trillion, as per CoinMarketCap at press time.