Bitcoin Drops Below $100K Amidst Trump's Tariffs, Industry Divided on Impact

Bitcoin's price has fallen below $100,000 for the first time in six days, following U.S. President Donald Trump's signing of an executive order to impose import tariffs on goods from China, Canada, and Mexico. The tariffs, which include a 25% additional tariff on imports from Canada and Mexico and a 10% additional tariff on imports from China, have already triggered retaliation from the three countries.

The crypto industry is divided on how these tariffs will affect the broader market. While some, like Crypto Capital Venture founder Dan Gambardello, dismiss the impact of Trump's tariffs and memecoins on the crypto market, others, such as Bitwise Invest head of alpha strategies Jeff Park, believe that a sustained tariff war could be beneficial for Bitcoin in the long run. However, opponents like Cinnaeamhain Ventures partner Adam Cochran argue that Bitcoin is not sufficiently separated from global markets and that an economic squeeze of this scale would mean pain all around.

Robert Kiyosaki, author of "Rich Dad, Poor Dad," remains bullish on Bitcoin, viewing recent price declines as a strategic purchasing opportunity rather than a cause for concern. He emphasizes the importance of long-term market fundamentals, particularly the rising U.S. debt level, which may drive more investors towards cryptocurrencies. Kiyosaki sees recent Bitcoin dips as buying opportunities, emphasizing rising debt and potential gains in the upcoming months amidst tariff-induced inflation fears.

Historically, inflation tends to drive investors towards alternative assets like Bitcoin and gold, particularly in times where fiat currencies are perceived as vulnerable. Kiyosaki's insights are echoed by many analysts who note that rising inflation correlates with greater demand for cryptocurrencies. As noted by market analyst Joe Burnett, an increase in the U.S. money supply directly influences Bitcoin's market trajectory, suggesting that a rise above previous highs could spark significant price increases.

February has historically been a strong month for Bitcoin, with an average increase in price of 15% since 2013. Following the trend of previous years, traders are closely monitoring market behaviors to predict if Bitcoin can replicate this pattern. An important realization for investors is that external factors, such as tariff impacts and inflation reports, can significantly affect market dynamics.

The U.S. money supply (M2) serves as a crucial metric