Image
Image
27-29 May, 2025
Image 27-29 May, 2025

Las Vegas, NV

Skip to content
Subscribe
  • Home
  • Services
  • Video
  • Events
Subscribe

Reading

Trump’s Tariffs: Bitcoin Dips Under $100K as Trade War Fears Mount
News Markets

Trump’s Tariffs: Bitcoin Dips Under $100K as Trade War Fears Mount

The proposed tariffs will go into effect on Tuesday, and the digital assets market was the first one to react.
Alex Lari
By: Alex Lari
Feb 03, 2025
3 min read
Trump’s Tariffs: Bitcoin Dips Under $100K as Trade War Fears Mount

Bitcoin market took a big hit this weekend after Trump signed an executive order slapping new tariffs on Canada, Mexico and China. The move sent markets into a tailspin with bitcoin dipping below $100,000, wiping out billions from the space.

On Saturday Trump followed through on his campaign promise and imposed steep tariffs on major trading partners. His executive order put a 25% tariff on imports from Mexico and Canada and a 10% tariff on goods from China. He cited drug trafficking, particularly fentanyl, as the reason.

trump tariffs
Donald Trump on X

“The sustained influx of illicit opioids and other drugs has profound consequences on our Nation,” Trump said in his executive order. These tariffs will stay in place until these countries take serious action to stop the fentanyl from coming into the U.S.

The tariffs go into effect Tuesday at 12:01 a.m. and have already prompted swift retaliation from the affected countries.

Mexico’s President Claudia Sheinbaum announced her country would impose its own tariff and non-tariff measures. Canadian Prime Minister Justin Trudeau also announced a 25% tariff on a range of U.S. goods and warned of further actions that could impact the U.S. energy sector.

The bitcoin market didn’t wait. BTC which was just above $106,000 dropped below $100,000 as investors panicked over a trade war. Altcoins got hit even harder with major tokens going down 6-8%.

In 24 hours over $500 billion was wiped out of the entire digital assets market. Over $700 million in leveraged positions were liquidated with longs taking the biggest hit.

With traditional markets closed over the weekend bitcoin and other digital assets were the first to respond to Trump’s tariff announcement.

The big drop in bitcoin has traders and analysts split on what’s next. Some think the tariffs will ultimately be good for bitcoin as a hedge.

“You simply have not yet grasped how amazing a sustained tariff war is going to be for Bitcoin in the long run,” said Jeff Park, head of alpha strategies at Bitwise.

But others think the short term effects could be worse. Nic Puckrin, CEO of Coin Bureau, said liquidity shocks and market wide risk aversion could bring bitcoin down even further in the short term.

Nic Puckrin tarrifs
Nic Puckrin on X

“Bitcoin still trades as a risk-on asset,” Puckrin said. “If markets keep collapsing, it could bring BTC down with it and end the current cycle.”

Analysts are waiting to see what happens next. Many think bitcoin needs to hold above $97,000 to stay bullish. Analyst Ali Martinez says $97,190 is the level to watch. Above that and we could see $110K, below and we could see a deeper correction.

Despite the uncertainty, some big names are still bullish.

Robert Kiyosaki says a bitcoin crash could present a good buying opportunity.

Kiyosaki has been saying bitcoin will be between $175,000 and $350,000 by the end of 2025 and sees long term value in the digital asset as the economy gets more uncertain.

Historically bitcoin has done well in February, especially in post-halving years. Since 2013 bitcoin has never closed February in the red, averaging 15% gains.

But the tariff inflation risk might kill the trend. Economists say Trump’s tariffs will increase prices for US consumers, inflation and delay interest rate cuts from the Fed — which will hurt bitcoin.

Stay on top of Bitcoin
news, get weekly updates
in your inbox.

Recommended News

Adoption
Adoption
Michael Saylor Says Proof-of-Reserves is a Bad Idea
May 28, 2025
3 min read
By: Alex Lari
Adoption
Adoption
Bitcoin 2025 Conference Kicks off in Las Vegas Today
May 27, 2025
3 min read
By: Alex Lari
Adoption
Adoption
H100 Becomes First Swedish Company with a Bitcoin Reserve
May 26, 2025
2 min read
By: Alex Lari
All News
Accelerating Adoption
News
  • Adoption
  • Legal
  • Markets
  • Mining
  • Opinion
  • Press Release
  • Learn
  • Sponsored
Company
  • About Us
  • Brand Assets
  • Newsletter
  • Services
  • Site Map
  • Terms & Privacy
Connect
  • Contact Us
  • Contribute
  • Services
  • Media Partner
  • RSS
  • Videos
Social Media
  • Twitter
  • YouTube
  • Telegram
  • LinkedIn
  • Instagram
  • Nostr
  • TikTok
  • Flipboard

© A Bitcoin-Focused Company | 256 Media, 2024

Language Switcher
Search
  • News
    • Adoption
    • Legal
    • Markets
    • Mining
    • Opinion
    • Press Release
    • Learn
    • Interviews
  • Services
  • Video
  • Events
  • News
    • Adoption
    • Interviews
    • Learn
    • Legal
    • Markets
    • Mining
    • Opinion
    • Press Release
  • About Us
  • Contact
  • Newsletter
Search

Popular Articles

Blockstream Unveils “Future of Finance Runs on Bitcoin” Vision
May 28, 2025 · 5 min
Michael Saylor Says Proof-of-Reserves is a Bad Idea
May 28, 2025 · 3 min
Sati Unlocks Lightning for 1.5M Xverse Users
May 27, 2025 · 3 min
Bitcoin 2025 Conference Kicks off in Las Vegas Today
May 27, 2025 · 3 min
H100 Becomes First Swedish Company with a Bitcoin Reserve
May 26, 2025 · 2 min
DDC Enterprise Starts Bold Bitcoin Strategy with 21 BTC Purchase
May 25, 2025 · 2 min

Bitcoin Only
Newsletter

Get weekly news roundups direct to your inbox!