Bitcoin Dips Below $100K Amid Market Jitters as Trump Slaps Tariffs on Mexico and Canada

Bitcoin (BTC) fell below the $100,000 psychological threshold on Feb. 2, marking the first time it has dipped below this level since Jan. 27

Bitcoin (BTC) fell below the $100,000 mark on Feb. 2, as Trump’s tariffs sent shockwaves through financial markets. Crypto markets, which are open throughout the weekend, took the first hit from the news.

Bitcoin price fell below $100,000 on Feb. 2, marking the first time it has dipped below this level since Jan. 27, according to Brave Bew Coin data. The pullback comes amid growing inflation concerns following Trump’s tariffs, which are expected to push up consumer prices.

Bitcoin price fell to $97,400 on Feb. 2, marking a sharp drop from the record highs above $110,000 seen in the past week. Some analysts believe that Bitcoin is setting up the mother of all bear traps, testing $95,000 as a key support level.

“The $95,000 range remains a critical support area,” said Jason Jones, analyst at BNC Research. “The intersection of Fed rate cuts, Trump’s power plays, and market sentiment will be the catalysts to watch.”

Bitcoin price still secured a record monthly close above $102,000 in January, marking its first-ever close above the six-figure mark. Despite the pullback, BTC is still up over 80% year-to-date.

Trump tariffs to remain in place until fentanyl flow stopsThe White House has made it clear that these tariffs aren’t temporary. A senior official told The Wall Street Journal that there will be no exemptions, and the levies will remain in place until Trump is satisfied that Mexico and Canada have stopped the flow of fentanyl into the U.S.

Trump took to Truth Social on Sunday morning, doubling down on his stance:

“THIS WILL BE THE GOLDEN AGE OF AMERICA! WILL THERE BE SOME PAIN? YES, MAYBE (AND MAYBE NOT!),” he wrote in all caps. “WE WILL MAKE AMERICA GREAT AGAIN, AND IT WILL ALL BE WORTH THE PRICE THAT MUST BE PAID.”

However, that price is likely to be felt by American consumers—especially as the tariffs increase costs for businesses relying on imported goods. Even Trump’s allies privately hope he will soften his stance once he’s demonstrated his willingness to act decisively.

Canada, Mexico to respond with countermeasuresCanadian Prime Minister Justin Trudeau, who has been trying unsuccessfully to reach Trump since his inauguration, expressed frustration at the move.

“No one—on either side of the border—wants to see American tariffs on Canadian goods,” Trudeau wrote on X, adding that Canada will respond with forceful countermeasures.

Mexico is also expected to retaliate, further escalating trade tensions. While some economists believe these tariffs could pressure China, Mexico, and Canada into new trade negotiations, others warn that a prolonged trade war could inflame inflation and drag down U.S. economic growth.

Bitcoin safe haven narrative holds strongDespite the short-term volatility, Bitcoin’s long-term outlook remains bullish, with spot Bitcoin ETFs surpassing $125 billion in assets just a year after their debut. Analysts predict BTC could reach $160,000 to $180,000 in 2025, especially if the Federal Reserve moves toward interest rate cuts amid economic slowdown signals.

The next key event to watch is the U.S. labor market report on Feb. 7. A weaker-than-expected jobs report could increase the odds of a Fed rate cut, which would provide a tailwind for Bitcoin and risk assets.

For now, though, markets are bracing for volatility — both in crypto and beyond — as Trump’s tariffs bring back the uncertainty of trade wars.