Trump's Tariffs and Their Impact on the Bitcoin Market
Date: 2025-02-03 Author: Oliver Abernathy Categories: CRYPTO PAYMENTS
On February 2, 2025, Bitcoin fell below the $100,000 mark, which was the result of the introduced tariffs that affected the financial markets. In particular, the fall began at about 3:00-4:00 (Kiev/MSK), and despite a short-term recovery, the cryptocurrency fell below an important psychological level again.
According to Coinglass, over the past 24 hours, $540 million worth of positions were liquidated on the cryptocurrency market, of which $482 million were longs. At the same time, the main blow fell on altcoins with small capitalization.
Secondary cryptocurrencies also suffered losses. Ethereum fell by 6.6%, falling below $3,100. The biggest losers were SOL, which fell by 17.5%, and DOGE, which lost 14.1%. ADA fell to $0.88, losing almost 10%.
On February 1, the White House announced the introduction of new tariffs: 25% on goods from Mexico and Canada and 10% on Chinese goods. The statement said that these measures are aimed at encouraging these countries to stop illegal immigration and prevent the flow of drugs into the United States.
In response, Canada announced the introduction of a 25% tariff on American goods. In turn, China is preparing to file a complaint with the WTO and take countermeasures. Mexico, in turn, announced the possible use of tariff and non-tariff measures in response to the US actions.
Some experts suggest that the consequences for the macroeconomy will be significant. Journalist Colin Wu notes that stock markets can expect a fall of up to 10%, which already happened in 2018-2019.
The crypto community is divided on the impact of the tariff war on cryptocurrencies. Dan Gambardello, founder of Crypto Capital Venture, said that the current situation is stable and does not lead to the end of the bull cycle. He also noted that large players such as BlackRock continue to accumulate ETH and BTC, despite the current market fluctuations.
On the other hand, Jeff Park, head of alpha strategies at Bitwise Invest, pointed out that the impact of the tariff war on cryptocurrencies may be much more significant than many assume. Adam Cochran from Cinnaeamhain Ventures emphasized that Bitcoin, despite its independence, remains highly dependent on global economic factors and may come under pressure in an economic contraction.
The forecasts for Bitcoin in the future remain uncertain, but experts from Bitwise believe that in the long term, new economic measures may cause less profound corrections than in the past.
