Bitcoin Plunges Below $100K as U.S. Tariffs Shake Markets

Renewed Trade Tensions and U.S. Tariffs Trigger Crypto Sell-Off

The cryptocurrency market suffered a sharp decline over the weekend as renewed trade tensions, driven by U.S. tariffs, rattled global investors. Bitcoin (BTC) fell below $100,000 for the first time in six days, while Ethereum (ETH) plummeted to levels unseen since November.

U.S. Tariffs on Mexico, Canada, and China Escalate Economic Uncertainty

The downturn began after U.S. tariffs were imposed on America’s top trading partners by President Donald Trump. A 25% tariff on imports from Canada and Mexico, coupled with a 10% tariff on Chinese goods, intensified market fears. The decision, justified under the International Emergency Economic Powers Act, was aimed at addressing illegal immigration and fentanyl-related concerns.
In response, Canada’s Prime Minister Justin Trudeau announced countermeasures, slapping tariffs on $155 billion worth of U.S. goods. Similarly, China vowed to take its case to the World Trade Organization (WTO) while preparing unspecified countermeasures. These retaliatory moves, sparked by U.S. tariffs, heightened market uncertainty, fueling investor anxiety.

Bitcoin Struggles as Traditional Markets React to Policy Shifts

Initially, Bitcoin remained resilient despite the U.S. tariffs announcement. However, as investors weighed the broader economic impact, risk-off sentiment led to significant losses across the cryptocurrency sector. Within 24 hours, the crypto market shed $200 billion in value, with Bitcoin dropping to $94,994 and Ethereum slumping 20%.
The impact of U.S. tariffs extended beyond digital assets, as traditional financial markets also showed signs of stress. Analysts suggest that the imposed tariffs could drive inflation, pressuring the U.S. Federal Reserve to reconsider its stance on interest rate cuts.

Will Bitcoin Benefit from Long-Term Trade Instability?

Despite the current sell-off, some industry experts see the U.S. tariffs and ongoing trade war as a long-term positive for Bitcoin. Jeff Park, head of alpha strategies at Bitwise Asset Management, stated that continued economic turbulence could eventually weaken the U.S. dollar, making Bitcoin an attractive alternative store of value.
Meanwhile, others caution that Bitcoin still behaves like a risk-on asset in the short term. Nic Puckrin, CEO of Coin Bureau, warned that if macroeconomic instability worsens, Bitcoin could see further declines. “If traditional markets continue collapsing, Bitcoin might not be immune,” he noted.

Market Outlook: Key Levels to Watch Amid U.S. Tariffs Impact

Investors are closely monitoring the $90,000 level as a crucial support zone for Bitcoin. A sustained break below this threshold, particularly in response to ongoing U.S. tariffs, could push the cryptocurrency further down toward $80,000.
With Canada, Mexico, and China implementing retaliatory tariffs and global inflation concerns rising, Bitcoin’s next move remains uncertain. Traders are bracing for heightened volatility in the coming weeks as geopolitical and macroeconomic developments unfold.