FameEX Hot Topics | Trump’s Tariff Move Shakes Markets, Bitcoin Falls to $91,362

Bitcoin’s price dropped sharply on Monday evening following President Donald Trump’s announcement of a 25% tariff on imports from Canada and Mexico. The tariffs, set to take effect on March 4, 2025, prompted widespread market unease. U.S. stock indices also declined that afternoon, as investors responded to both the tariff news and earnings concerns surrounding chipmaker Nvidia.

The international financial community quickly picked up on Trump’s announcement, generating heated discussions. Trump defended the move, stating, “It will be very good for our country. Our country will be extremely liquid and rich again.” He emphasized the tariffs’ scheduled implementation, while placing blame on previous U.S. leadership for allowing prolonged trade abuses. In his view, these measures were necessary to correct long-standing economic imbalances.

By 6:58 p.m. ET, Bitcoin’s price had fallen to $91,362, reflecting widespread nervousness among traders. Over the last 24 hours, Bitcoin had dropped 4.8%, and over the past month, it had declined by 12.7%. This downturn came even after Michael Saylor of Strategy promoted the idea that Bitcoin was “on sale,” having recently acquired 20,356 BTC for $1.99 billion. Despite Saylor’s bullish sentiment, market sentiment remained cautious.

Derivatives markets echoed this anxiety. Data from coinglass.com showed that $140 million in long positions were liquidated within four hours. The broader digital asset market followed suit, dropping over 6% and falling just below $3 trillion. The sudden pullback highlighted the fragile investor sentiment that had been building in recent weeks.

Despite the bearish price action, trading volumes surged. Bitcoin’s share of the total market climbed to 61%, even as its price fell. This paradoxical increase in dominance suggests investors may be gravitating toward perceived stability in Bitcoin amid market uncertainty. Trump’s tariff plan has undoubtedly shaken both traditional and crypto markets, setting the stage for further adjustments in the coming days.

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