- Bitcoin drops below $100K after Trump’s tariff order sparks global trade retaliation.
- $22.7M liquidated as investors react to U.S. tariffs and escalating trade tensions.
- Crypto market split on whether tariffs will fuel Bitcoin growth or trigger further decline.
Bitcoin fell below $100,000 after U.S. President Donald Trump signed an executive order imposing new import tariffs. The cryptocurrency dropped to $98,701, according to CoinMarketCap. Investors reacted quickly to the announcement, leading to increased market volatility.
Tariff Order Sparks Global Trade Retaliation
United States government authorities enforced a 25% tax on Canadian and Mexican imports. The Trump administration plans to impose a 10% import tax on Chinese goods. The United States will also impose a 10% tax on Canadian energy imports.
U.S. imposed tariffs triggered retaliatory measures from Canada, China and Mexico that targeted American exports. Prime Minister Justin Trudeau of Canada declared a 25% tariff to be applied against $106.5 billion worth of U.S. import products. The Chinese Ministry of Commerce developed a complaint for the World Trade Organization and went on to issue further retaliatory measures.
Bitcoin Market Reacts to Trade War Escalation
Bitcoin dropped immediately after the tariff announcement. CoinGlass data showed that $22.7 million in long positions were liquidated in four hours. Market uncertainty drove investors to readjust their financial positions.
Market participants consider $100,000 as an important psychological threshold that provides support. Analysts predicted price drops would persist if trade tensions remained elevated.. Bitcoin remained under pressure as investors monitored developments closely.
Crypto Investors Disagree on Market Impact
Some investors believe the tariffs will not cause long-term damage to Bitcoin. Dan Gambardello, founder of Crypto Capital Venture, dismissed concerns about the market impact. He pointed out that BlackRock continues to accumulate Bitcoin and Ethereum.
Others warned that Bitcoin remains tied to global financial conditions. Adam Cochran, a partner at Cinneamhain Ventures, noted that Bitcoin now trades like a leveraged technology stock. He argued that economic stress could negatively affect cryptocurrency prices.
Uncertain Future for Bitcoin Amid Global Trade Disputes
Bitcoin faces market challenges as global trade tensions grow. Some analysts expect prices to stabilize once investors adjust to new policies. Others predict increased volatility if trade conflicts escalate further.
The cryptocurrency market remains highly sensitive to economic changes. Investors will observe the worldwide market movements during the next few weeks. Bitcoin’s future movement will be determined by the ongoing evolution of international trade disputes.
