The Trump starts trade war: Bitcoin crashes to $91,000
Donald Trump announced import tariffs on China, Mexico and Canada this weekend. As a result of the start of his trade war, the Bitcoin price plummeted to $91,000, and the US stock market also appears to be opening with strong red numbers.
Trump causes crash on financial markets
It is obvious that Donald Trump has little regard for the development of the financial markets in the short term. He has a clear mission: to bring important industries back to the United States - and for him, that includes import tariffs.
As a result, $500 billion disappeared from the crypto market in the last 24 hours and Bitcoin is under massive pressure. At the time of writing, the drop is 6.63%, giving a price of $93,000.
However, the rest of the crypto market suffered even heavier losses. Ethereum fell 20% to $2,474, XRP dropped 24.40% to $2.16, and Solana is down 8.61% at $191.86.
The US stock market is also coming under heavy pressure due to Trump's measures. The Nasdaq-100 futures fell by 2.78% on February 3. The S&P 500 recorded a decline of 2%, while the Dow Jones fell by 1.5%.
Everything indicates that today will be a red day on the financial markets.
What did Trump announce?
The import tariffs announced by Trump are the main reason for the heavy losses. Tariffs of 25% have been announced on goods from Canada and Mexico, while a rate of 10% applies to China. These tariffs are set to come into force on February 4.
George Saravelos of Deutsche Bank told CNBC clearly:
"The market must structurally and significantly rate the risk of a trade war higher after the announcements this weekend."
Tobin Marcus of Wolfe Research is also clear:
"Markets should take Trump's tariff agenda literally, rather than just seriously. If this new level of seriousness is priced into the markets, Monday could be a tough day."
That seems to be exactly what is happening now – the crypto market has experienced a massive crash, while stock markets are also falling sharply. What is striking is that Bitcoin remains relatively stable compared to the rest of the market.
Ethereum, for example, fell by 20%, while Bitcoin only fell by 6.26%. This shows how strong Bitcoin's current market position is.
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