The cryptocurrency market was dyed red after US President Donald Trump announced 25% tariffs to almost all products imported from Mexico and Canada, and 10% to acquisitions from China.
The new rates will take effect as of Tuesday, February 4.
In his executive order, Trump explained: “We need to protect Americans, and it is my duty as president to guarantee the security of all citizens. I made a promise in my campaign to stop the avalanche of illegal foreigners and drugs that are poured through our borders, and the Americans voted overwhelmingly in favor. ”
The measure, which gives Place to a new tariff war, generated a bearish pressure in the price of Bitcoin (BTC) and the rest of the cryptocurrencies.
In that framework, the price of The currency created by Satoshi Nakamoto fell below $ 100,000.
For its part, The Altcoins such as Solana (Sol), XRP and Ethher (ETH), the Ethereum cryptocurrency15%collapsed, on average.
In fact, and as we report earlier this Sunday, the market dawned with a living red color. The main coins according to capitalization have suffered during the day and BTC already accumulates a fall of more than 5% in the weekly sail.
Why does the cryptocurrency market fall?
The question that arises in this context of economic instability is: Why do BTC and cryptocurrencies fall?
As cryptootics reported, Tariffs generate uncertainty and can increase volatility in international markets.
Although BTC is considered as a shelter asset, it is not strange that its price is affected by the behavior of investors.
In these contexts, Capital usually migrates to safer assets, but with lower yieldslike treasure bonds.
Likewise, it should be noted that commercial disputes usually strengthen the dollar and, as a consequence, Exercise bearish pressure on the assets considered risk, such as actions, BTC and other cryptocurrencies.
Michael Van de Poppe, financial market analyst, referred to the situation that the market is going through and said: “It is typical. In times of panic and uncertainty, market creators and whales accumulate more money from retail trade. Retail investors have been selling. The big investors have been buying. ”
For his part, the cryptocurrency specialist known in X as Wonga Fasi believes: «These falls suggest that recent tariff ads have influenced the feeling of investors, causing a change towards safer assets.»
The renowned analyst Dan Crypto details that «there was a considerable sale during the weekend due to tariff uncertainty» and adds: «It is good to be attentive to the gap that will probably open tomorrow.»