Bitcoin Plunges Below $101K as Trump Imposes Tariffs on Key Trading Partners

Bitcoin's price has plummeted below $101,000 amid President Trump's imposition of tariffs on Canada, Mexico, and China. The cryptocurrency market is experiencing a risk-off reaction, with Bitcoin (BTC) dropping by 2% and altcoins such as ether (ETH), XRP, and solana (SOL) declining by 6%-8%. The broad market gauge CoinDesk 20 Index has fallen by 4.8%.

The tariffs, which went into effect on Tuesday, are a result of President Trump's Executive Order authorizing 25% levies on nearly all imports from Mexico and Canada, and a 10% tariff on goods from China. The president cited the sustained influx of illicit opioids and other drugs as the reason for the tariffs, stating that they have profound consequences on the nation, endangering lives and putting a severe strain on the healthcare system, public services, and communities.

There will be no exemptions to the tariffs, according to a senior White House official. The tariffs will remain in place until the president is satisfied that the named countries have stopped the flow of fentanyl into the U.S. Outgoing Canadian Prime Minister Justin Trudeau has stated that Canada is ready with a forceful and immediate response if the United States moves ahead with the tariffs.

The cryptocurrency market has been volatile in response to the tariffs, with Bitcoin's price dropping below $101,000. The risk-off reaction is likely due to investors' concerns about the potential economic impact of the tariffs on global trade and the U.S. economy. As traditional markets are closed for the weekend, the crypto market is bearing the brunt of the reaction.

The tariffs are a significant development in the ongoing trade tensions between the United States and its trading partners. The imposition of tariffs on Canada, Mexico, and China is likely to have a substantial impact on the global economy and the cryptocurrency market. Investors are closely watching the situation and adjusting their portfolios accordingly.