Yigit Taha OZTURK 
Bitcoin (BTC) has dropped below $100,000 after U.S. President Donald Trump signed an executive order imposing import tariffs on China, Canada, and Mexico. This decision has caused major volatility in the markets, with all three countries responding swiftly.
Trump’s Tariffs and Their Market Impact
According to a February 1 statement from the White House, Trump has implemented a 25% additional tariff on imports from Canada and Mexico and a 10% tariff on Chinese goods. Energy resources from Canada will face a lower 10% tariff.
Trump justified his decision by stating that it was necessary to “hold Mexico, Canada, and China accountable to their promises of halting illegal immigration and stopping poisonous fentanyl and other drugs from flowing into our country.”
However, market sentiment suggests that these tariffs could increase inflation and lead to higher interest rates, pushing investors away from riskier assets like crypto and towards traditional investments such as bonds and fixed deposits.
Countries Respond Quickly!
In response to Trump’s decision:
- Canadian Prime Minister Justin Trudeau announced a 25% tariff on $106.5 billion worth of U.S. goods.
- China’s Ministry of Commerce stated it would file a complaint with the World Trade Organization (WTO) and take corresponding countermeasures.
- Mexican President Claudia Sheinbaum said on X that she has instructed the Secretary of Economy to “implement Plan B,” which includes “tariff and non-tariff measures in defense of Mexico’s interests.”
Shortly after these retaliations, Bitcoin (BTC) fell below the psychological $100,000 level, hitting $99,111 for the first time since January 27. As of publication, Bitcoin is trading at $99,540.
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According to CoinGlass data, $22.70 million in long positions were liquidated in the four hours leading up to publication.
Crypto Community Divided Over Market Impact
The crypto industry is split on the impact of Trump’s tariffs on the broader market.
Crypto Capital Venture founder Dan Gambardello dismissed the panic, saying, “I cannot believe there’s a popular opinion floating around that Trump tariffs and his memecoins ended the bull cycle.”
Bitwise Invest’s head of alpha strategies, Jeff Park, argued that in the long run, “a sustained tariff war will be amazing for Bitcoin.”
However, Cinneamhain Ventures partner Adam Cochran had a different view, stating that Bitcoin is not separated enough from global markets and now trades like triple-leveraged tech.
“An economic squeeze of this scale just means pain all around, and we should be okay with denouncing that,” Cochran said.
Bitcoin’s recent drop once again highlights its connection to global economic policies. As the markets closely watch Trump’s trade decisions and potential new sanctions, Bitcoin and other crypto assets face continued uncertainty.
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