Cryptocurrencies tumbled on Sunday in a risk-off move after US President Donald Trump imposed long-threatened import tariffs on Canada, Mexico, and China. The price of bitcoin fell by 7%, dropping to $93,768.66, according to Coin Metrics.
The tariffs, which will take effect Tuesday, aim to increase taxes on imports from the three countries, with 25% tariffs for Mexico and Canada, and 10% duty for China. This move is expected to impact US businesses with $1.6 trillion in trade ties with these countries.
Despite some predicting bitcoin’s long-term benefits from a potential weakening dollar and US interest rates, many traders believe it will be negatively affected by the uncertainty surrounding Trump’s tariffs. Bitcoin currently trades around 16% below its January record of $109,350.72.
Investors are closely watching $90,000 as a key support level in bitcoin, with some warning of a deeper pullback to $80,000 if the cryptocurrency breaks below this threshold.
Source: https://www.cnbc.com/2025/02/02/bitcoin-dips-below-97000-after-trump-orders-tariffs-smaller-cryptocurrencies-tumble.html