Bitcoin Tumbles Below $100,000 Mark as Markets React to Trump's New Tariffs

The cryptocurrency market shed $200 billion in value, with every asset in the top 100 sinking into the red over the past 24 hours.

Bitcoin price dropped below the $100,000 level on Sunday, as markets reacted to President Donald Trump’s new tariffs on America’s three largest trading partners.

The cryptocurrency market saw over $200 billion wiped off its total value, as every asset within the top 100 was trading in the red over the past 24 hours.

The sell-off occurred following Trump’s announcement of a 25% tariff on imports from Mexico and Canada, in addition to an extra 10% tariff on Chinese goods.

The administration justified the move by citing an “extraordinary threat” posed by illegal immigration and the fentanyl crisis, according to the International Emergency Economic Powers Act.

Bitcoin, which is often touted as a hedge against economic uncertainty, initially held steady but later plunged as risk-off sentiment spread.

The sudden downturn led to $540 million in liquidations, according to data from Coinglass, with the majority stemming from overleveraged long positions.

Bloomberg Economics estimates that the tariffs will push the US average tariff rate to its highest level since the 1940s.

Both Canada and Mexico have pledged retaliatory tariffs, with Canadian Prime Minister Justin Trudeau confirming levies on $155 billion worth of US goods.

Some analysts view the trade war narrative as bullish for Bitcoin and other cryptocurrencies in the long run.

Rising tariffs are stoking inflation concerns, and there is an increasing demand for alternative stores of value. Some investors believe Bitcoin could benefit as a hedge against economic instability and currency devaluation.

“You simply have not yet grasped how amazing a sustained tariff war is going to be for Bitcoin in the long run,” said Jeff Park, head of alpha strategies at Bitwise, in a tweet.

Others, however, fear that liquidity shocks and market-wide risk aversion could continue weighing on price action in the short term.

“In the short term, Bitcoin still trades as a risk-on asset,” said Nic Puckrin, CEO of Coin Bureau, in an email to CoinDesk. “If markets keep collapsing, it could bring BTC down with it and end the current cycle.”

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Kyle Baird is DL News’ Weekend Editor. Got a tip? Email at kbaird@dlnews.com.