Bitcoin Crashes Below $100,000 Amid Trade Tensions

For the first time since January 27, Bitcoin has plunged below the crucial $100,000 mark. This sudden drop comes in response to escalating trade tensions sparked by Donald Trump’s latest tariff hike targeting China, Canada, and Mexico—leading to swift reactions from these countries. 😱📉

 

Bitcoin Crashes Below $100,000 Amid Trade Tensions

Trump’s New Tariffs Send Bitcoin Tumbling 🚨

President Donald Trump has just signed a decree imposing heavy tariffs on imports from three major trade partners:

🔹 Canada & Mexico: A 25% tariff hike. 🔹 China: A 10% increase on all imports. 🔹 Exception: Canadian energy resources get a slightly reduced rate of 10%.

According to the White House, the move aims to pressure these nations into taking stronger measures against illegal immigration and the trafficking of illicit substances—especially fentanyl.

Markets wasted no time reacting, with Bitcoin nosediving to $99,111 before stabilizing around $99,540. Data from CoinGlass indicates that this sudden plunge led to the liquidation of approximately $22.7 million in long positions within just four hours. 💸

Analysts are sounding the alarm: these tariffs could stoke inflation, possibly forcing the Federal Reserve to keep interest rates high—a scenario that typically pushes investors towards traditional assets rather than cryptocurrencies.

 

Global Reactions & Mixed Sentiments in the Crypto Community 🌍

As expected, the affected countries didn’t take Trump’s decision lightly:

Country

Response to Tariffs

🇨🇦 Canada

Slaps a 25% tax on $106.5 billion worth of American goods.

🇨🇳 China

Plans to escalate the issue to the WTO.

🇲🇽 Mexico

President Claudia Sheinbaum unveils a "Plan B" with countermeasures.

Within the crypto world, opinions are divided:

Dan Gambardello (Founder of Crypto Capital Venture) remains optimistic, pointing out that BlackRock is still accumulating ETH & BTC, suggesting that institutional investors aren’t panicking.

Adam Cochran (Cinneamhain Ventures) is more cautious, warning that Bitcoin is highly vulnerable to global economic instability.

 

What’s Next? Temporary Correction or Major Trend Shift? 🔮

This latest market shake-up highlights the increasing connection between traditional financial markets and crypto. With Trump back in the White House shaking up U.S. policies in just one week, all eyes are on how these geopolitical moves will impact Bitcoin’s long-term trajectory.

The coming weeks will be crucial: will Bitcoin recover, or are we seeing the start of a deeper downward trend? Buckle up, because it’s going to be a wild ride. 🚀

What do you think? Is this just a bump in the road, or a sign of bigger trouble ahead? Drop your thoughts in the comments! 👇

Next Post Previous Post
No Comment
Add Comment
comment url