Bitcoin (BTC) Price Outlook, February 25: Despite the increasing SEC activity, bitcoin (BTC) also hit the reverse on February 24.

Market risk sentiment waned after US President Trump declared tariffs on Canada and Mexico will be effective March 4.

Fresh from hitting 17 straight sessions below the critical $100,000 mark, bitcoin (BTC) slid further on Monday, hitting lower levels as US President Trump announced tariffs on Canada and Mexico.

The tariffs, which are set to take effect on March 4, come with the threat of reciprocal tariffs from both countries. The announcement follows a weekend of escalating tensions between the US and its northern neighbors.

Bitcoin (BTC) price dropped Monday as US President Trump announced tariffs on Canada, Mexico

The tariffs announcement comes amid heightened market risk sentiment, with bitcoin and the broader crypto market both showing sensitivity to US tariff developments.

Higher tariffs could drive inflationary pressures, which in turn could force the Federal Reserve to maintain a higher-for-longer rate path. A more hawkish Fed rate path would weigh on risk assets, including BTC.

The announcement also comes on the heels of news that South Dakota’s House Commerce and Energy Committee has ended the chances of a state-level Strategic BTC Reserve (SBR).

The vote on Monday followed the State of Montana’s rejection of legislation that would have allowed state investments in precious metals and digital assets.

The decision casts doubt on broader efforts to establish Bitcoin as a strategic asset at the national level. Earlier speculation about a US SBR contributed to BTC’s rally, pushing it to a January 20 record high of $109,312.

Meanwhile, BTC's price outlook appears to be turning bearish with the recent setbacks, tariffs, Fed hawkishness, and BTC-spot ETF outflows.

The outflows and other developments have weighed on sentiment, dragging BTC toward the $90k mark. On Monday, the US BTC-spot ETF market extended its outflow streak to five sessions.

After closing Sunday down 0.41% to $91,622, BTC slid by 4.64% on Monday.