Trump's Tariffs Spark Global Trade Fears, Bitcoin and Altcoins Suffer Deeper Losses

It's been a tough few days for the cryptocurrencies and crypto world. Donald Trump's tariffs towards Canada, Mexico, and China hit the market hard and continue to do so.

The cryptocurrencies and crypto world at large have had a rough few days. When Donald Trump levied tariffs against Canada, Mexico, and China, it dealt a severe blow to the market, and he has even threatened the European Union with upcoming sanctions.

This put a strain on the market as a whole, even causing Bitcoin to reach a three-week low of $91,441.89 at one point.

Altcoins suffered greater losses.

Some altcoins, on the other hand, fared far worse than others.

For instance:

Trump Tariffs Spark Global Trade Fears

The United States imposed a 25% tariff on imports from Canada and Mexico on February 1, 2025, and a 10% tariff on Chinese products. These measures sparked fears of a global trade war and caused market volatility.

In response, Bitcoin, the main cryptocurrency, fell below $100,000, and Ether, the second-largest digital asset, dropped to $2,494.33—its lowest level since early September.

Related: Could Layer-1 Altcoins Be Included in National Crypto Reserves?

Retaliation and Reduced Liquidity

Canada and Mexico swiftly retaliated against the tariffs by imposing their own tariffs on US products, while China contested the US actions at the World Trade Organization. This escalating situation increased market volatility as investors feared potential inflation and slower global economic growth.

Liquidity decreased, which had a particularly negative impact on risky assets including cryptocurrencies and altcoins.

Related: A 60% Bitcoin Dominance Could Reshape the Altcoins Market – Analyst

Some speculate that this is only a short-term hiccup and that a recovery is possible, but it’s crucial to remember that fear was largely to blame for this, and fear is a strong driving force.

As a result, the worst may not be over yet, leaving us to watch and wait as the market finds its footing.

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