Bitcoin Plummets Toward $90,000 After Trump’s Tariff Shock

Washington, D.C. – February 3 (ANI): Bitcoin and ether experienced sharp declines on Monday, triggered by escalating global trade tensions following Donald Trump’s tariff announcement.

???? Bitcoin fell to $94,476, briefly hitting a three-week low of $91,441 during early Asian trading.
???? Ether plunged 24%, dropping to $2,494, its lowest level since early September.
???? The CoinDesk 20 Index, tracking the top 20 cryptocurrencies, recorded a 19% decline, reflecting overall market unease.

Trump’s Tariffs Spark Market Sell-Off

Over the weekend, President Donald Trump imposed new tariffs on America’s top trading partners:
✅ 25% on imports from Mexico
✅ 25% on Canadian goods (except energy, which faces 10% tariffs)
✅ 10% on imports from China

With over $1.6 trillion in annual trade between these nations and the U.S., the announcement triggered a wave of uncertainty. Canada and Mexico pledged retaliatory tariffs, while China vowed to challenge the levies at the World Trade Organization (WTO).

Investor Reactions & Market Impact

"Crypto is the only way to express risk over the weekend, and when trade tensions rise, investors turn to bitcoin as a hedge," said Chris Weston, head of research at Pepperstone.

Bitcoin reached an all-time high of $107,071 on January 20, the day of Trump’s presidential inauguration. The 40% rally since the November election was fueled by expectations that Trump’s administration would introduce crypto-friendly regulations.

However, some investors are disappointed by the lack of immediate regulatory clarity. Despite Trump’s promise to make the U.S. the “crypto capital of the world”, market uncertainty has triggered short-term volatility.

Long-Term Outlook & Support Levels

???? Market analysts are closely watching Bitcoin’s $90,000 support level. If prices fall below this, a further dip toward $80,000 is possible.

???? Historically, Bitcoin corrections of 30% have occurred in bull market cycles, making this dip a critical test for investors.

???? Long-term investors view Bitcoin as a hedge against inflation and economic instability, but short-term price action remains highly volatile, driven by geopolitical and macroeconomic developments.