Bitcoin falls below $100,000 as Trump’s tariffs shake markets

• Published On: 03 February 2025 at 19:50

Cryptocurrency prices fell on Monday, with Bitcoin hitting a three-week low and Ether reaching its lowest level since early September.

The uncertainty surrounding a possible global trade war alarmed investors, driving them away from risky assets.

Bitcoin, the world's largest and most popular cryptocurrency, fell to $94,476.18 early Monday in Asia, with a low of around $91,441.89.

Meanwhile, Ether, a smaller cryptocurrency, fell about 24% to levels last seen in early September, and was last priced at $2,494.33.

Over the weekend, US President Donald Trump imposed 25% tariffs on Mexican and most Canadian imports, as well as 10% tariffs on Chinese goods, effective Tuesday.

In retaliation, the United States' top two trading partners, Canada and Mexico, quickly promised countermeasures, while China announced that it would challenge Trump's tariffs at the World Trade Organisation.

Cryptocurrencies trade continuously, even on weekends, and have recently become more sensitive to overall market sentiment.

"Crypto is really the only way to express risk over the weekend, and on news like this, cryptocurrency resorts to a risk proxy," said Chris Weston, head of research at Pepperstone.

At the same time, downward pressure on crypto has increased following a strong rally after Trump's election, as some investors have been disappointed by the lack of immediate action to support crypto or ease regulations since he took office.

Bitcoin peaked at $107,071.86 on January 20, the day Trump was inaugurated as the 47th President of the United States.

It has risen by 40% since the November election, fuelled by hopes for crypto-friendly regulations under the Trump administration.

Last month, Trump directed the formation of a cryptocurrency working group tasked with proposing new digital asset regulations and investigating the establishment of a national cryptocurrency reserve.