Mon Feb 03 01:50:00 UTC 2025: ## Crypto Market Crashes After Trump Imposes Tariffs
**NEW YORK (CNBC)** — The cryptocurrency market experienced a significant downturn on Sunday, following President Trump’s announcement of new tariffs on imports from Mexico, Canada, and China. Bitcoin plummeted 7%, trading at $93,768.66, while the CoinDesk 20 index, tracking the top 20 cryptocurrencies, fell by 19%. Ether suffered an even steeper decline, dropping 20% to its lowest point since November.
The market slide began after Trump signed an executive order imposing a 25% tariff on imports from Mexico and Canada, and a 10% tariff on goods from China. These tariffs, impacting approximately $1.6 trillion in US trade, triggered a risk-off sentiment among investors.
While some analysts, like Jeff Park of Bitwise Asset Management, predict that a prolonged trade war could ultimately benefit Bitcoin due to potential dollar weakening, the immediate reaction was a sell-off. Bitcoin, often viewed as a long-term hedge against inflation, currently behaves as a risk asset in the short term, reacting negatively to trade war uncertainty.
Analysts are closely monitoring the $90,000 support level for Bitcoin, warning of a potential further drop towards $80,000 if this level is breached. Bitcoin is currently down 16% from its January 2025 high of $109,350.72. However, experienced crypto investors note that corrections of around 30% are common during bull markets.
First Piper 