Bitcoin Plummets Below $100,000 After Trump Announces New Tariffs Targeting China, Canada, and Mexico

The bitcoin has experienced a significant drop, falling below the symbolic threshold of 100,000 dollars for the first time since January 27.

Bitcoin price dropped below the symbolic threshold of 100,000 dollars for the first time since January 27. This occurred amid rising trade tensions after Donald Trump announced new tariffs on China, Canada, and Mexico, which prompted immediate reactions.

American President Donald Trump signed a decree imposing major tariffs on imports from three key countries. The measure entails a 25% increase in tariffs on Canadian and Mexican imports, while Chinese products face a 10% hike.

Only Canadian energy resources benefit from a reduced rate of 10%. According to the White House, this decision aims to compel these countries to strengthen their fight against illegal immigration and the trafficking of illicit substances, particularly fentanyl.

This announcement had a rapid impact on the financial markets. Bitcoin price dropped to as low as 99,111 dollars before stabilizing around 99,540 dollars. Data from CoinGlass reveals that this drop led to the liquidation of approximately 22.70 million dollars in long positions over four hours.

Analysts suggest that these tariff measures could contribute to rising inflation, which may prompt the Federal Reserve to maintain high interest rates. This perspective typically encourages investors to favor more traditional assets over cryptocurrencies.

In response to these measures, the targeted countries reacted swiftly. Canadian Prime Minister Justin Trudeau announced immediate reprisals with a 25% tax on 106.5 billion dollars worth of American products.

China promised to raise the issue at the WTO, while Mexican President Claudia Sheinbaum ordered the implementation of a “Plan B” which includes various retaliatory measures.

Within the crypto community, opinions differ regarding the long-term implications of this situation. Dan Gambardello, founder of Crypto Capital Venture, downplays the impact of these measures, highlighting that BlackRock continues to accumulate ETH and BTC despite the panic among retail investors.

In contrast, Adam Cochran of Cinnaeamhain Ventures expresses concern about bitcoin’s vulnerability to global economic turbulence.

This current crisis illustrates the growing interaction between traditional markets and cryptocurrencies, as the sector evolves in the face of geopolitical tensions. The coming weeks will be crucial to determine whether this correction is temporary or indicative of a deeper trend change. Meanwhile, Donald Trump’s return to the White House marks a major break, disrupting American politics in just one week.