Daily Crypto Signals: Trump’s Trade Tariffs Send Bitcoin Below $100K, Triggering Broader Market Decline

After US President Donald Trump’s declaration of new import taxes on China, Canada, and Mexico, the market for cryptocurrencies saw notable volatility

The cryptocurrency market saw notable turbulence on Monday as U.S. President Donald Trump announced new import tariffs on China, Canada, and Mexico, leading to a drop in Bitcoin below the $100,000 mark.

While an astute Ethereum trader made headlines by generating $16 million from a leveraged short position, the broader market response highlighted crypto's sensitivity to macroeconomic events.

Crucial Takeaways:

Following President Trump's executive order imposing a 25% tariff on imports from Canada and Mexico, and a 10% tariff on Chinese goods, the cryptocurrency landscape faced new challenges.

The White House statement indicated that these actions aim to hold these countries accountable for commitments related to drug trafficking and illegal immigration.

According to market analysts, these tariffs may contribute to rising inflation and higher interest rates, ultimately deterring investors from riskier assets such as cryptocurrency.

Notably, India's secretary of economic affairs, Ajay Seth, announced that the nation is reconsidering its stance on cryptocurrencies in light of evolving global regulations.

This policy reevaluation aligns with Trump's establishment of the Working Group on Digital Asset Markets, suggesting a broader institutional acceptance of digital assets.

Bitcoin Drops Below $94,000

Over the past week, Bitcoin's price experienced a decline of over 7.4%, falling below the $94,000 mark. BTC/USD faced technical pressure as it trades below the crucial $100,000 level, despite outperforming most altcoins.

According to Bitget Research's chief analyst, Ryan Lee, Bitcoin could encounter acceptance at $95,000. However, other analysts, such as BitWise's Jeff Park, suggested that Trump's trade war may ultimately drive Bitcoin prices "violently higher" due to potential dollar weakness and global currency debasement.

Ethereum Fails to Hold $3,000

Ethereum ETH/USD witnessed a steeper decline than Bitcoin, slipping below the $3,000 level with a 14% drop over the past week.

One trader notably capitalized on this downturn, generating a massive trading profit of $15.7 million from a 50x leveraged short position opened at $3,388.

Highlighting the competition faced by Ethereum from other layer-1 protocols in areas like applications, use cases, staking, and more, Nansen analyst Aurelie Barthere noted that Ethereum needs more fundamental blockchain activity to reverse its six-week decline.

Top Altcoins to Watch

Amid the broader market downturn, several altcoins have shown resilience: