Trump’s Tariffs Trigger Crypto Market Crash: Bitcoin Drops Below $100K – TronWeekly

TronWeekly
Crypto World News
February 3, 2025 by Mutuma Maxwell
Donald Trump’s new tariffs on imports from Canada, Mexico, and China triggered a sharp downturn in the crypto market. Ether, Bitcoin, and other major digital assets suffered significant losses as investors reduced their risk exposure. The market-wide sell-off highlighted growing concerns over economic instability and inflationary pressures linked to trade tensions.
Bitcoin’s value dropped sharply, falling below $100,000 for the first time since early January. The cryptocurrency hit a low of $92,460 as investors liquidated positions in response to Trump’s tariffs. The sell-off reflected broader market fears about economic instability and a potential slowdown in global trade.
Trump's tariffs impact on the crypto market today pic.twitter.com/XWF3C4L7m7
Ether suffered its steepest loss in nearly four years, plummeting by 26.53% to $2,135. The decline marked its largest intraday percentage drop since May 2021, erasing recent gains. Investors quickly exited positions, seeking safety in more stable assets amid uncertainty.
Other cryptocurrencies also faced losses, with XRP dropping 23%, Solana declining 7.5%, and Dogecoin losing 24.5% of its value. Traders reacted to the market shift by adjusting portfolios and securing profits before further volatility. The rapid declines demonstrated how geopolitical events impact digital asset prices.
New tariffs increased concerns about inflation and economic growth, affecting capital allocation in the cryptocurrency market. With disposable income decreasing, investors had fewer funds for speculative assets like Bitcoin. Rising trade tensions also strengthened the US dollar, making cryptocurrencies more expensive for international buyers.
Stock market fluctuations, as traditional and digital assets correlated, further contributed to Bitcoin’s decline. Institutional investors who previously sought Bitcoin as an inflation hedge reconsidered their exposure. The growing connection between global trade policies and crypto performance signaled a shift in market sentiment.
Additionally, according to CoinGlass data, over $2 billion in Bitcoin liquidations took place. Long positions accounted for $1.83 billion of those liquidations, showing that the market caught bullish traders off guard. The sell-off forced investors to reassess strategies in light of unpredictable macroeconomic developments.
Market experts remain divided on how tariffs will affect Bitcoin and other cryptocurrencies in the long run. Some analysts believe weakening the US dollar could eventually boost Bitcoin’s value. Others warn that inflation and economic instability might continue to pressure the crypto market.
10X Research’s Markus Thielen noted that Bitcoin nearly broke out before the tariffs disrupted its momentum. The unexpected policy shift caused market corrections, breaking key technical support levels. Investors had anticipated the tariffs but underestimated the geopolitical backlash.
Ryan Lee of Bitget Research stated that Bitcoin’s reaction underscores its increasing sensitivity to global events. The crypto market now responds more closely to geopolitical shifts, policy decisions, and economic indicators. The volatility highlights how digital assets are no longer isolated from broader financial markets.
Filed Under: Altcoin News, News Tagged With: Bitcoin, Crypto Market, TRUMP
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