Bitcoin Drops Below $100k as Trump's Tariffs Spark Market Anxiety

The market for cryptocurrencies is under heavy stress. Slipping below the $100,000 level, Bitcoin has been battered by economic uncertainty brought on by US President Donald Trump's new wave of tariffs.

Bitcoin price dropped to nearly $93,500 on Friday as economic uncertainty sparked by US President Donald Trump’s new wave of tariffs gripped markets.

Investors observed anxiously as global markets reacted to the escalating trade tensions, following Trump’s announcement of a 25% tariff on imports from Canada and Mexico, and a 10% tariff on Chinese goods.

The tariffs prompted swift retaliations from the impacted nations, raising the specter of a full-blown trade war. In addition to a rise in crude oil prices, the response of the equities market was palpable, with a clear drop in US stock futures.

Even Bitcoin, which is often touted as a hedge against broader market volatility, was not immune to the sell-off.

The leading cryptocurrency fell to its lowest level in three weeks, reaching almost $93,500. Other major digital currencies, such as Ethereum, also experienced significant declines as investors pulled back amid the mounting uncertainty.

Bitcoin’s price drop accelerated further as the economic anxiety intensified. According to Glassnode data, long-term holders are reducing their holdings, indicating a shift in sentiment. Analysts warned of potential further declines, as the market becomes increasingly cautious and fearful.

Bitcoin investors are now keeping a close watch on the $90,000 support level, fearing that a substantial drop below it could push prices toward $80,000. Currently, Bitcoin is down about 15% from its January 20 record high of $109,350.

However, veteran traders view such corrections as normal in bull markets, where pullbacks of around 30% have been common.

"The magnificent bull market in Bitcoin continues, and experienced traders expect a 30% correction, which would take Bitcoin down to $75,000," stated a recent analysis by Kitco.

Despite the sell-off, some investors, like Robert Kiyosaki, are seeing it as an opportunity to buy more.

"TRUMP TARRIFS BEGIN: Gold, silver, Bitcoin may crash," tweeted Kiyosaki. "GOOD. Will buy more after prices crash. Real problem is DEBT….which will only get worse. CRASHES mean assets are on sale. Time to get richer."

The broader financial landscape is also feeling the heat. The latest tariffs have put further pressure on supply chains, leading to major fears of rising inflation and an economic slowdown.

With the Federal Reserve maintaining a cautious approach to monetary policy, investors are bracing for intense volatility in the coming weeks.

Canada and Mexico have already announced countermeasures to Trump’s tariffs, while China has threatened possible economic retaliation. According to market experts, if the tensions continue to escalate, risk assets, including Bitcoin, may see further declines before stabilizing.