Bitcoin, which recently soared to record highs, just faced a sharp sell-off after President Donald Trump announced new tariffs on Canada, Mexico, and China. The flagship cryptocurrency dropped nearly 7%, falling to $93,434, as investors reacted to concerns over global trade tensions.
What’s Behind the Drop?
On February 3, 2025, Trump signed executive orders imposing:
🔹 25% tariffs on Canada & Mexico
🔹 10% tariffs on China
These policies raised fears of increased inflation and economic uncertainty, causing a ripple effect across risk assets like cryptocurrencies.
How Bad Was the Crash?
Bitcoin wasn’t the only victim—Ethereum and other major altcoins took a serious hit too:
🔻 Ethereum (ETH): Down 20% to $2,468
🔻 Binance Coin (BNB): Fell 16% to $545
🔻 XRP: Crashed 24% to $2.15
🔻 Solana (SOL): Dropped 8.62% to $190
What’s Next?
Crypto analysts warn that the worst may not be over. With other nations—especially the UK and BRICS countries—expected to react, volatility could continue in the coming weeks.
Sumit Gupta, co-founder of CoinDCX, believes that while short-term uncertainty is high, Bitcoin’s long-term future remains strong. He suggests that geopolitical instability often pushes investors toward decentralized assets like crypto, much like gold during past financial crises.
Key Takeaway
Bitcoin’s ability to act as a hedge against inflation and economic turbulence may attract more investors in the long run. But for now, traders should be cautious, as the market digests the impact of Trump’s policies.
