YEREVAN (CoinChapter.com) — Bitcoin BTC fell below the critical $100,000 level, continuing its downward trend. The cryptocurrency briefly reached $99,111, marking its lowest point since Jan. 27, and has since declined further to $97,178 according to TradingView data.
The decline followed Donald Trump’s executive order imposing new import tariffs on goods from China, Canada, and Mexico.
According to a Feb. 1 statement from the White House, the United States is implementing a 25% tariff on imports from Canada and Mexico and a 10% tariff on Chinese goods. Energy resources from Canada will have a lower 10% tariff.
Canada, China, and Mexico Retaliate
Soon after Trump’s announcement, Canada’s Prime Minister Justin Trudeau stated that Canada would impose a 25% tariff on $106.5 billion worth of U.S. goods. He emphasized that Canada would respond decisively to protect its economy.
China’s Ministry of Commerce confirmed plans to file a complaint with the WTO and apply countermeasures against U.S. imports. It described the tariffs as “unilateral and damaging to global trade.”
In Mexico, President Claudia Sheinbaum announced on X that she instructed the Secretary of Economy to implement “plan B”, introducing tariff and non-tariff measures to safeguard Mexico’s interests.
$22.7M Liquidated as Bitcoin Reacts to Global Economic Pressure and Crypto Industry Split on Tariffs’ Effect
According to CoinGlass data, approximately $22.70 million in long positions were liquidated within four hours leading up to Bitcoin’s drop.
Many attribute Bitcoin’s volatility to ongoing global economic pressures and policy changes. Reactions within the crypto market remain divided on whether the tariffs will have a lasting impact on Bitcoin.
Crypto Capital Venture founder Dan Gambardello questioned concerns over the tariffs. He said,
“I cannot believe there’s a popular opinion floating around that Trump tariffs and his memecoins ended the bull cycle.”
Meanwhile, Bitwise Invest head of alpha strategies Jeff Park commented on the potential effects, stating that a prolonged tariff war could influence Bitcoin’s future market position.
Others disagree. Cinneamhain Ventures partner Adam Cochran noted that Bitcoin still moves in relation to traditional markets. He said,
“Bitcoin is not separated enough from the global markets and trades like triple-levered tech these days.”
Cochran also pointed out that the current economic pressure could affect multiple asset classes, including Bitcoin.
