Trump's Tariffs Spark Global Market Uncertainty, Bitcoin Plunges

Bitcoin, Ether, and XRP face uncertainty as Donald Trump eyes further tariffs, with potential impacts on global markets and cryptocurrency prices.

On February 1, U.S. President Donald Trump announced new tariffs on imports from Canada, Mexico, and China, set to take effect on February 4. The tariffs include a 25% levy on goods from Canada and Mexico and a 10% tariff on Chinese imports. These measures have sparked concerns about their potential impact on global markets and cryptocurrencies.

Bitcoin, the largest cryptocurrency by market capitalization, has been volatile in recent days, with prices dropping below the $100,000 mark. Ether, the second-largest cryptocurrency, has also experienced a significant decline, falling to its all-time lowest at 20%. XRP, the third-largest cryptocurrency, has also seen a decrease in its value.

The tariffs have raised concerns about inflation and the potential impact on cryptocurrency markets. Market analysts have warned that the tariffs could fuel inflation, complicating central banks' efforts to lower interest rates and dampening investor sentiment in cryptocurrency markets. The impact of the dispute is being felt across various asset classes, with the U.S. dollar strengthening and the global money supply contracting.

Prominent asset management firm 21Shares has filed with the U.S. Securities and Exchange Commission (SEC) to launch a spot Polkadot exchange-traded fund (ETF) in the country. South Korea's so-called bitcoin kimchi premium has surged to a 10-month high amid the recent cryptocurrency market downturn, suggesting significant resilience in South Korean exchanges amid the sell-off.

Bitfinex Alpha's latest report shows that the Bitcoin market is undergoing a structural shift. Despite BTC's price falling below $100,000 due to the impact of Trump's tariff policy, continued institutional buying indicates market resilience. MicroStrategy increased its holdings by $1.1 billion to 10,107 BTC, bringing its total holdings to 158,400 BTC, and submitted a financing application to the SEC to prepare for future purchases. Japanese listed company Metaplanet completed a $745 million financing to expand its Bitcoin reserves as a hedge against yen depreciation risk. In January