The crypto market is experiencing a major shake-up as Bitcoin has dropped below the symbolic $100,000 mark. The drop comes against a backdrop of trade tensions reignited by Donald Trump, who has just imposed new tariffs on imports from China, Canada and Mexico.
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New tariffs send shockwaves through the market crypto
The White House announced a series of drastic trade measures on February 1, imposing tariffs of 25% on Canadian and Mexican imports, and 10% on Chinese products. These measures, justified by a desire to combat illegal immigration and drug trafficking, provoked an immediate reaction from the financial markets.
Bitcoin, particularly sensitive to macroeconomic turbulence, has rapidly dumped under $100,000.
The target countries were quick to respond. Canada, through Justin Trudeau announced equivalent retaliatory measures on over $106.5 billion worth of U.S. goods. China plans to lodge a complaint with the World Trade Organization (WTO), Mexico is preparing a “Plan B” including tariff and non-tariff measures.
Trump’s trade war triggers a wave of sell-offs
The shockwave of this emerging trade war has quickly spread to the crypto market. Data from CoinGlass reveals over $550 million in liquidations.
Faced with this situation, the crypto community finds itself deeply divided over its long-term prospects. On the one hand, Dan Gambardello, founder of Crypto Capital Venture takes a decidedly optimistic view. In particular, he points out that major institutional players such as BlackRock have continued to acquire ETH and BTC, contrasting with the panic among retail investors. In contrast, Adam Cochran, from Cinnaeamhain Ventures takes a more cautious stance, highlighting the continuing interdependence between Bitcoin and traditional financial markets in the face of global economic shocks.
This raises broader concerns about the potential inflation generated by these new trade barriers. Such inflationary pressure could force central banks to tighten monetary policy, creating a less favorable environment for risky assets such as cryptocurrencies, in favor of more traditional, defensive investments.
As a journalist at Coinpri, I’ve been captivated by the world of bitcoin and blockchain since 2020. The decentralized aspect of Bitcoin particularly piqued my interest. Since then, I’ve been working constantly to spread my knowledge, hoping one day to see a world where everyone fully enjoys their financial freedom.
