FameEX Hot Topics | Trump’s Tariff Decision Sends Markets Reeling, Bitcoin Drops to $91,362

Bitcoin’s price saw a significant drop Monday evening, following an announcement by President Donald Trump that he plans to implement a 25% tariff on imports from Canada and Mexico starting March 4, 2025. The news sparked broad market unease, as U.S. stock indices also fell during the afternoon session. Investor sentiment was further dampened by concerns over chipmaker Nvidia’s earnings outlook.

The international financial community quickly reacted to Trump’s tariff announcement. Speaking to reporters, Trump defended the policy, stating, “It will be very good for our country. Our country will be extremely liquid and rich again.” He emphasized that the tariffs would proceed as planned and blamed past U.S. leadership for permitting prolonged trade abuses. Trump positioned the move as a corrective measure to address these longstanding imbalances.

By 6:58 p.m. ET, Bitcoin’s price had fallen to $91,362, with traders showing clear nervousness. In the past 24 hours, Bitcoin dropped 4.8%, and over the previous month, it declined 12.7%. This came despite optimistic comments from Michael Saylor, co-founder of Strategy, who recently described Bitcoin as “on sale” after his firm purchased 20,356 BTC for $1.99 billion. However, even Saylor’s bullish remarks did little to stabilize the market mood.

The derivatives market reflected these growing concerns. Data from coinglass.com revealed that $140 million in long positions were liquidated within just four hours. Across the broader digital asset market, losses exceeded 6%, bringing the total market value below $3 trillion. This rapid sell-off underscored the fragility of investor sentiment, which had been eroding in recent weeks.

Paradoxically, Bitcoin’s market dominance increased as its price dropped, reaching 61% of the total crypto market share. This shift indicates that despite the bearish price trend, some investors turned to Bitcoin as a perceived safe haven. Trump’s tariff announcement has created waves across both traditional financial markets and the cryptocurrency space, leaving investors bracing for further adjustments ahead.

Disclaimer: The information provided in this section is for reference only and does not represent any investment advice or the official views of FameEX.