Bitcoin drops below $100,000 as President Trump follows through on tariffs against Canada, Mexico, and China. The tariffs have shocked global markets, with cryptocurrencies experiencing significant losses. Bitcoin’s drop comes amidst rising geopolitical tensions.
Trump’s 25% tax on goods from Mexico and Canada, and 10% on China, have disrupted global markets, affecting the cryptocurrency space the hardest. Cryptos, unlike traditional markets, felt the immediate effects over the weekend, seeing massive sell-offs and market volatility.
Bitcoin’s decline by 2% below $100,000 stands in stark contrast to its recent bullish movement. Altcoins like Ether, XRP, and Solana have been hit harder, with losses between 6% and 8%. The CoinDesk 20 Index has dropped 4.8% due to the tariff announcements and broader market sentiment.
Trump’s tariffs are tied to fighting the opioid crisis, citing the flow of fentanyl from Canada, Mexico, and China. This strategy, under the “America First” approach, aims to strengthen trade negotiations, but it has sparked backlash, especially from Canada and Mexico. Prime Minister Justin Trudeau has warned of immediate retaliation if tariffs proceed.
Crypto investors are bracing for further volatility. Bitcoin’s drop below $100,000 may continue if trade tensions escalate. The crypto market’s 24/7 nature makes it uniquely sensitive to real-time global events like these, and the next few days will determine how the market adjusts to the ongoing geopolitical risks.