Bitcoin Plunges Amid Trade War Fears

Bitcoin's price has plummeted to a three-month low, with analysts attributing the decline to renewed concerns over the escalating trade war. The cryptocurrency's fear and greed index has reached an "extreme fear" level, indicating a fragile sentiment among investors.

President Trump's recent announcement that tariffs on Canada and Mexico will proceed as planned after March 4th has exacerbated these concerns. The move has put pressure on risk assets, including cryptocurrencies, as investors seek safer havens.

Shenwan Bank analyst's report highlights the impact of geopolitical tensions on Bitcoin's price. The analyst noted that Trump's statement pushed the cryptocurrency fear and greed index to its lowest point in months, reflecting the uncertainty and anxiety among investors.

The trade war's impact on Bitcoin is not isolated. Other risk assets, such as stocks, have also been affected by the escalating tensions. As investors grapple with the uncertainty, they are increasingly favoring safe-haven assets like gold and government bonds.

The future of Bitcoin and other cryptocurrencies remains uncertain, as the trade war's outcome continues to hang in the balance. Investors will be closely watching the developments in the trade negotiations, as any significant progress could potentially boost sentiment and drive a recovery in Bitcoin's price.