Bitcoin tumbles as trade war fears sweep on Trump tariffs
Published: 03:58 03 Feb 2025 EST
Bitcoin joined stocks in taking a beating on Monday after the weekend brought confirmation of sweeping tariffs under President Donald Trump.
A 2.6% decline over the morning took the world’s largest cryptocurrency to US$95,137 and 8.3% off last week’s level above the US$103,000 mark.
Trump on Saturday set 25% tariffs on Canadian and Mexican goods, alongside 10% levies against Chinese imports, blaming the flow of drugs such as fentanyl into the US.
The trio subsequently vowed to respond, with Trump also threatening tariffs on European goods over the weekend.
Stocks across Asia and Europe faced heavy selling as a result, while futures pointed to hefty declines on Wall Street ahead of Monday’s opening bell.
“It's too early to know exactly what impact tariffs will have on the global economy, but it is fair to say that they have a high potential of triggering inflation, and weighing heavily on global growth, including the US economy,” XTB analyst Kathleen Brooks noted.
“History tells us that the kernel of the problem with tariffs is that it raises the cost of living, and it provides life support for less productive companies that otherwise would not exist.
“At this stage in the global trade war, the future looks bleak for the US economy and for elsewhere.”
Smaller tokens faced even more pressure than Bitcoin in the meantime, with Ether down 10.7% at US$2,564 on Monday as Ripple dropped 8.8% to US$2.35.
