The world’s largest cryptocurrency, Bitcoin, has taken a sharp dive, sliding towards $90,000 after US President Donald Trump announced tariffs on imports from key trading partners, including Canada, Mexico, and China.
President Trump’s move to impose tariffs has sent shockwaves across global financial markets, with Bitcoin being no exception.
The cryptocurrency is known for its volatility and has seen its price fall, raising concerns among investors. Trump’s tariff threat is not only affecting Bitcoin but also echoing through other cryptocurrencies and traditional markets, highlighting the interconnectedness of the global economy.
According to Coin Metrics, the price of bitcoin was last lower by 7% at $93,768.66. The CoinDesk 20 index, which measures the largest 20 digital assets by market cap, dropped 19%. Ether slumped 20% to its lowest level since November.
The dip began Saturday night after Trump signed an order imposing 25% tariffs on imports from Mexico and Canada, as well as a 10% duty on China, which will take effect Tuesday. The U.S. does about $1.6 trillion in business with the three countries.
Jeff Park, Bitwise Asset Management’s head of alpha strategies, said a sustained tariff war will be “amazing” for bitcoin in the long run due to an eventual weakening of the dollar and U.S. rates.
While most analysts remain positive about Bitcoin in the long term, the short-term outlook does not look good. Bitcoin could drop toward the support of the large $90,000 to $109,588 range it has been stuck in for the past several days. Such a fall could pull several altcoins lower.
Investors are closely watching the situation, with some viewing the current dip as a buying opportunity, while others are more cautious, awaiting clearer signals from the market.
