[NEWS] Bitcoin plummets due to Trump tariffs; altcoins fall by around 20%

On the 3rd, the cryptocurrency market fell sharply. Bitcoin (BTC) fell well below the milestone of $100,000 (approximately 15.57 million yen), plummeting to around $91,200 (approximately 14.2 million yen). The cryptocurrency market is falling across the board due to the additional tariffs imposed by US President Trump on Canada and other countries.

Altcoins in particular have seen heavy selling, with prices falling by around 20% across the board. At the time of writing, Ethereum (ETH) was trading at $2,500 (approximately 389,000 yen), down about 18% from the previous day, and XRP was trading at around $2.2 (approximately 340 yen), down about 22%. In addition, Dogecoin (DOGE) and SUI (SUI) were down about 22%, and ADA (ADA) was down 25%, with the impact on altcoins being greater than Bitcoin, which fell by around 5% from the previous day.

Altcoins had been rising in price significantly along with Bitcoin, but profit-taking and risk-off selling intensified due to the worsening sentiment in the stock market after President Trump announced additional tariffs.

The cryptocurrency market has been unstable since last weekend, when it became clear that the additional tariffs would be implemented as scheduled. After that, the Nikkei average temporarily fell 1,100 yen from the previous weekend during Asian hours on the 3rd, leading to a large drop as anxiety over the "Trump tariffs" grew.

President Trump had been planning to impose additional tariffs on Canada, Mexico, and China for some time, but the postponement had generated optimism in the stock market and elsewhere. However, President Trump signed the executive order on the 1st as usual. This raises the possibility of a global trade war developing.

Canada and Mexico have already indicated that they will take retaliatory measures, and China has also stated that it will "take appropriate countermeasures" and has solidified its intention to file a complaint with the World Trade Organization (WTO).

President Trump's hardline stance and the retaliatory battles between various countries are likely to increase instability in the global economy, and it is thought that this will have some impact on the cryptocurrency market, including Bitcoin.

Image: Shutterstock

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