"Trump's Tariffs Spark Global Market Turmoil, Bitcoin Plunges"

Global markets experienced a significant downturn following U.S. President Donald Trump's announcement of substantial tariffs, which sent shockwaves through the digital world and currency markets. The dollar surged to a two-week high, while cryptocurrencies and other digital assets witnessed a sharp decline in value.

Trump's decision to impose a 25% tariff on European, Mexican, and Canadian imports, along with an additional 10% levy on Chinese goods set to take effect on March 4, dashed the hopes of many global investors. This move sparked digital trade tensions, prompting investors to sell their virtual assets en masse.

The cryptocurrency market was particularly hard hit by the news. Bitcoin plummeted more than 7% below $80,000, its lowest level since November 2024. Ethereum also suffered a significant drop, falling over 10% to $2,134.69 within 24 hours. The global market crash was a result of investors' lack of preparedness for the sudden tariff announcement.

Both Bitcoin and Ethereum are now on track for their steepest monthly losses since June 2022, reversing the strong rally they experienced last year, which was fueled by optimism over a crypto-friendly administration. Joshua Chu, co-chair of the Hong Kong Web3 Association, noted that "Bitcoin's dip below $80,000 shows the effect of political endorsements and regulatory support has faded. It remains a risky asset rather than the inflation hedge many claim to be."

Currency markets also felt the pressure from Trump's tariff plans. The Australian dollar fell to a three-week low of $0.62105, adding to its weekly loss of close to 2%. The New Zealand dollar dropped 0.5% to $0.5599, a 1.9% decline for the week. The euro languished at $1.0380, with a 0.6% weekly loss. The Canadian dollar fell to C$1.4452, 1.5% lower for the week.

The yuan was quoted at 7.2846 against the dollar as traders refrained from taking large positions in anticipation of a crucial political summit next week. Alex Loo, FX strategist at TD Securities, stated that