Bitcoin (BTC) Falls Below $100,000 Level as Global Economic Pressures Mount

Bitcoin BTC fell below the critical $100,000 level, continuing its downward trend. The cryptocurrency briefly reached $99,111, marking its lowest point since Jan. 27

Bitcoin price fell below the critical $100,000 level on Monday, continuing its recent downtrend. The cryptocurrency briefly reached $99,111 at its lowest, according to TradingView data, before declining further to $97,178 at the time of writing.

The decline comes after Donald Trump's executive order to impose new import tariffs on goods from China, Canada, and Mexico.

According to a Feb. 1 statement from the White House, the United States will implement a 25% tariff on imports from Canada and Mexico, while Chinese goods will be subject to a 10% tariff. Energy resources from Canada will have a lower 10% tariff.

Canada, China, and Mexico to Retaliate

Following Trump's announcement, Canada's Prime Minister Justin Trudeau said that Canada will impose a 25% tariff on $106.5 billion worth of U.S. goods. He stated that Canada will respond decisively to protect its economy.

Meanwhile, China's Ministry of Commerce confirmed plans to file a complaint with the WTO and apply countermeasures against U.S. imports. It described the tariffs as "unilateral and damaging to global trade."

In Mexico, President Claudia Sheinbaum announced on X that she has instructed the Secretary of Economy to implement "plan B," which includes tariff and non-tariff measures to safeguard Mexico's interests.

$22.7M Liquidated as Bitcoin Reacts to Global Economic Pressure, Crypto Industry Split on Tariffs' Effect

According to CoinGlass data, approximately $22.70 million in long positions were liquidated over four hours leading up to Bitcoin's drop.

Many attribute Bitcoin's volatility to ongoing global economic pressures and policy changes, and reactions within the crypto market remain varied on whether the tariffs will have a lasting impact on Bitcoin.

Crypto Capital Venture founder Dan Gambardello questioned concerns over the tariffs. He said,

"I cannot believe there's a popular opinion floating around that Trump tariffs and his memecoins ended the bull cycle.”

However, Bitwise Invest head of alpha strategies Jeff Park commented on the potential effects, stating that a prolonged tariff war could influence Bitcoin's future market position.

Others disagree, with Cinneamhain Ventures partner Adam Cochran noting that Bitcoin still moves in relation to traditional markets. He said,

"Bitcoin is not separated enough from the global markets and trades like triple-levered tech these days.”

Cochran also pointed out that the current economic pressure could affect multiple asset classes, including Bitcoin.