Bitcoin Plunges as Trump’s Tariffs Shake Markets

Bitcoin and other cryptocurrencies took a big hit on Sunday after former U.S. President Donald Trump announced new import tariffs on Canada, Mexico, and China.

Bitcoin dropped 7% to $93,768, while Ether fell 20%—its lowest level since November. The CoinDesk 20 index, which tracks the top 20 digital assets, also plunged 19%.

The sell-off started Saturday night after Trump signed an order imposing 25% tariffs on imports from Mexico and Canada, and 10% tariffs on Chinese goods, set to take effect Tuesday. With $1.6 trillion in trade between the U.S. and these countries, the decision created uncertainty in financial markets.

Short-Term Pain, Long-Term Gain?

Jeff Park from Bitwise Asset Management believes that while tariffs may cause short-term volatility, they could benefit Bitcoin in the long run by weakening the U.S. dollar and interest rates.

Right now, investors are closely watching the $90,000 support level for Bitcoin. If it falls below this, prices could slide further to $80,000.

Bitcoin is currently 16% below its all-time high of $109,350 from January 20. However, seasoned investors know that 30% pullbacks are common in crypto bull markets.