Global Trade Tensions Impact Cryptocurrency Markets

In a surprising turn of events, Bitcoin's value dipped below $98,000 this Sunday. This downturn comes in the wake of increasing market uncertainty, fueled by US President Donald Trump's recent decision to impose tariffs on several key trading partners, including Mexico, Canada, and China. The European Union is also bracing for potential tariffs, adding to the global economic tension.

Retaliatory Measures and Market Reactions

In response to the tariffs, China, Canada, and Mexico have announced their own retaliatory measures. Notably, Canada has proposed imposing 25% tariffs on $155 billion worth of American goods. The European Union has also voiced its criticism of Trump's actions, warning of firm retaliation should European exports be targeted. This escalating trade war has sent ripples through the cryptocurrency market, with Bitcoin and Ethereum experiencing significant drops in value. By 12:26 pm ET, Bitcoin was down by 3.05%, trading at $97,512, closely followed by Ethereum, which slid 3.60% to $3,003.