Trump's Tariffs Spark Crypto Market Rout

Cryptocurrency Prices Tumble Amid Trump Tariffs and Market Uncertainty

Cryptocurrency markets experienced a significant downturn on Monday, February 1, as U.S. President Donald Trump imposed tariffs on China, Canada, and Mexico. The move, which sparked a broader risk-off move across global financial markets, sent cryptocurrency prices tumbling. Bitcoin, the world's largest cryptocurrency, fell as much as 10% to $91,695.8, while Ethereum, the second-largest cryptocurrency, slumped 22.7% to $2,434.84.

The tariffs, which include a 25% import duty on Canadian and Mexican goods and a 10% tariff on Chinese goods, have been met with retaliation from the affected countries, further undermining risk appetite. The move has also offset the prospect of friendlier crypto regulations under the 47th President, whose recent executive order calling for a crypto regulatory framework sparked little enthusiasm within markets.

The decline in cryptocurrency prices follows an over 1.5% slump in Wall Street futures, as traders positioned for a renewed trade war. The dollar, meanwhile, reached a near one-month peak, while safe havens such as gold saw some bids. Analysts warn that Trump's tariffs could drive up inflation and dent U.S. economic growth, potentially lessening the prospect of interest rate cuts by the Federal Reserve.

Bitcoin and altcoins crash after Trump's tariff announcements spook investors

Following President Donald Trump's announcement of tariffs on China, Mexico, and Canada, the crypto market fell on February 1 in a risk-off action. Bitcoin's price fell by 5%, which has rippled its way into altcoins. Effective February 1, the U.S. will impose tariffs of 25% on imports from Canada and Mexico and 10% on Chinese goods, adding further complexity to the current trade wars.

As a result, over the past 24 hours ending on February 3, Bitcoin (BTC) has experienced a notable decline amid a market-wide sell-off. The cryptocurrency fell by over 5%, reaching a low of approximately $91,200 before rebounding to around $94,000 as of this