Market Uncertainty Grows as Trump Imposes Tariffs

In a significant market shakeup, Bitcoin's value dropped below $98,000 this Sunday. This decline comes in the wake of US President Donald Trump's decision to impose tariffs on Mexico, Canada, and China, with the European Union potentially being the next target. The move has sparked widespread concern over a looming trade war, affecting global markets and cryptocurrencies alike.

Retaliatory Measures Announced by Affected Countries

In response to Trump's tariffs, China, Canada, and Mexico have announced retaliatory measures. Canada, for instance, is proposing 25% tariffs on $155 billion worth of American goods. The European Union has also criticized Trump's actions, warning of firm retaliation if European exports are targeted. This tit-for-tat tariff imposition has heightened fears of a full-blown trade war, further unsettling the markets.

Impact on Cryptocurrency Market

At 12:26 pm ET, Bitcoin was down 3.05%, trading at $97,512. Shortly after, Ethereum also experienced a significant drop, falling by 3.60% to sell for $3,003. The cryptocurrency market's reaction underscores the interconnectedness of global trade policies and digital currency valuations, highlighting the sensitivity of the crypto market to geopolitical tensions.