Bitcoin trading near $94,000 took a hit as Asian traders digested the implications of US President Donald Trump’s trade war threat. The market’s worst performers include major digital assets like BTC, ETH, SOL, and XRP, which all fell significantly in Asia before stabilizing later in the day.
President Trump recently doubled down on tariffs in a social media firestorm over the weekend, sparking concerns among traders. Despite this, his memecoin TRUMP token saw a 12% drop. The CoinDesk 20 index, which tracks top digital assets, also took a hit, falling nearly 17%.
The trade war has raised eyebrows among experts, with some calling it “the dumbest trade war in history.” The European Union and Brussels have vowed to respond firmly to any tariffs imposed on its member states.
As Asia began trading, prices of major cryptocurrencies tumbled: Bitcoin fell 8% at $93,100, while Ether plummeted nearly 20%. Solana’s SOL slipped 7%, and XRP dropped 23%.
The market correction was largely attributed to the US trade war with Canada and Mexico. Notably, some countries like the UK are exempt from tariffs, according to Trump.
Market observers remain skeptical about the benefits of tariffs, citing their potential to create economic disruption and drive inflation.
Source: https://www.coindesk.com/markets/2025/02/03/bitcoin-drops-8-to-usd93k-as-asia-awakens-to-trump-s-trade-war