"Bitcoin Plunges Below $100K Amidst Trump Tariffs and Crypto Market Rout"

Bitcoin Price Analysis: BTC Dips Below $100,000 As Canada And Mexico Counter Trump Tariffs

Bitcoin has dipped below the $100,000 threshold, marking a significant decline in its value. This downturn coincides with a substantial decrease in transaction activity on the Bitcoin network, bringing the memory pool (mempool) volume to its lowest level since March 2024. The decline follows broader market instability, with the total crypto market cap losing 5% of its value. Other major cryptocurrencies, such as Ethereum, Solana, and BNB, have also faced steep declines, with losses exceeding 7%.

The increased volatility triggered a liquidation spree, wiping out over $555 million in leveraged positions. According to CoinGlass, more than 239,000 traders faced forced liquidations, with long traders suffering the heaviest losses, amounting to $491 million. Short traders lost approximately $63 million.

The turmoil follows US President Donald Trump's decision to enforce stringent tariffs on major trading partners, including Canada. The administration claims the move is designed to curb the flow of undocumented immigrants and illicit substances into the US. However, the tariffs have sparked concerns about inflationary pressure on American consumers. In response, Canadian Prime Minister Justin Trudeau announced retaliatory measures, imposing 25% tariffs on $106 billion worth of American imports. The first round of levies, targeting $30 billion in goods, will take effect immediately, with an additional $125 billion in tariffs scheduled in the coming weeks.

Beyond market turbulence, Bitcoin's network activity has declined significantly, with the mempool—the waiting area for unconfirmed transactions—showing a notable reduction in volume. On February 1, data from CryptoQuant shows that the mempool is nearly empty, indicating a steep drop in transaction volume. The data further reflects that Bitcoin transaction fees have dropped to 1 sat/vB, signaling reduced demand for block space. This marks the lowest level of transaction activity since March 2024.

This trend raises concerns about Bitcoin's usage as a medium of exchange, with some analysts suggesting that the growing perception of BTC as digital gold may discourage transactional use. Bart Mol, host of the Satoshi Radio Podcast, criticized the