Bitcoin Plunges to $91,800 Amidst Trump's Trade Tariffs

Bitcoin's price plummeted to $91,800 on the BTC-PERP platform, marking a significant drop in the cryptocurrency's value. The decline comes amidst a broader sell-off in the crypto market, with investors reacting to U.S. President Donald Trump's imposition of trade tariffs on China, Canada, and Mexico.

The crypto market's downturn follows a 1.5% slump in Wall Street futures, as traders position for a renewed trade war. All three targeted countries have vowed retaliation, further undermining risk appetite. Bitcoin slid as much as 10% to $91,695.8, while world no.2 crypto Ether slumped 22.7% to $2,434.84.

Trump's tariffs largely offset the prospect of friendlier crypto regulations under the 47th President. His recent executive order calling for a crypto regulatory framework also sparked little enthusiasm within markets. Trump's trade tariffs sparked a broad risk-off move across global financial markets, while pushing the dollar to a near one-month peak. Safe havens such as gold also saw some bids, although the dollar remained the main target of most buying.

Analysts warned that Trump's tariffs could drive up inflation and dent U.S. economic growth, while also lessening the prospect of interest rate cuts by the Federal Reserve. The crypto market's decline has had a cascading effect on altcoins, with Ethereum (ETH) falling by nearly 20%, Ripple (XRP) by 22%, Solana (SOL) by 8%, and Binance Coin (BNB) by over 15%.

Rising trading volume alongside price dips often signals strong selling pressure or market panic, as more traders offload their assets. This pattern suggests that long-term investors are now selling their coins at lower profits than their purchase price—or even at a loss year-to-date—as illustrated by the Bitcoin: Long Term Holder SOPR chart. Such behavior often indicates capitulation among long-term holders, a phenomenon common during bearish market trends and corrections.