Trump's Tariff Plans Spark Bitcoin Price Plunge

The White House's confirmation of President Trump's tariff plans has led to a significant drop in the price of Bitcoin, with the cryptocurrency experiencing a weekly decline. The news of the impending tariffs on Mexico, Canada, and China has caused market uncertainty, leading to a sell-off in Bitcoin and other cryptocurrencies.

On Thursday, President Trump announced his intention to impose 25% tariffs on Mexico and Canada, and a 10% levy on China, effective Saturday, February 1. This news initially caused Bitcoin to reverse 2% lower, falling from around $106,000 to approximately $104,000. U.S. stocks also gave up some of their earlier gains but still finished the session in the green.

Friday brought a report from Reuters suggesting that the tariffs would be delayed until March 1, as a process was put in place to allow countries to seek exemptions for certain exports. However, the White House quickly refuted this report, with Trump's Press Secretary Karoline Leavitt confirming that the tariffs would go into effect the following day.

Similar to Thursday, Bitcoin had climbed above $106,000 earlier in the day and seemed poised to challenge a new record above $109,000. However, the tariff news once again sent prices tumbling, with Bitcoin trading just below $103,000 at press time, down 2.3% over the past 24 hours. The broader CoinDesk 20 Index was off 1.3% over the same time frame, outperforming mostly due to Ether's (ETH) 1.2% advance.

The uncertainty surrounding the tariffs has led to a decline in investor confidence, with many opting to sell their cryptocurrency holdings. The impact of the tariffs on the global economy remains to be seen, but the potential for increased market volatility could continue to affect the price of Bitcoin and other cryptocurrencies in the coming weeks.