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President Donald Trump’s new import tariffs on major U.S. trading partners sparked a widespread market selloff, pushing Bitcoin below $100,000 and sending stock futures tumbling during weekend trading.
The cryptocurrency dropped to $99,111 on Sunday, its lowest level since January 27, 2025. The announcement of a 25% tariff on Canadian and Mexican imports and a 10% duty on Chinese goods rattled investors, who rushed to offload risky assets.
“Crypto is really the only way to express risk over the weekend, and on news like this crypto resorts to a risk proxy,” said Chris Weston, head of research at Pepperstone.
Ethereum crashed by 24% to $2,494.33, while other major cryptocurrencies experienced even steeper declines. Trading volumes surged by more than 200%, indicating significant selling pressure. According to CoinGlass data, around $22.70 million in long positions were liquidated within four hours.
The market turbulence spread to traditional financial markets, with U.S. stock futures showing signs of stress. Dow futures dropped 463 points, while S&P 500 and Nasdaq-100 futures fell by 1.6% and 2.1% respectively.
A sharp reaction from the market marks a dramatic shift from earlier crypto optimism. When Trump won the election, Bitcoin’s price shot up 40%, reaching $107,071 on his January 20 inauguration day. Investors had high hopes after Trump promised to make America “the crypto capital of the planet.”
Trump eventually created a group to study crypto rules and look into making a national crypto reserve. However, hopes have started to fade as no major policy changes have happened yet. This delay, combined with the new tariffs, has pushed many investors to sell their holdings.
Jeff Park, head of alpha strategies at Bitwise Asset Management, offered a contrarian view on the long-term implications. “A sustained tariff war will be amazing for bitcoin in the long run due to an eventual weakening of the dollar and U.S. rates,” he said.
Trump defended his decision on Truth Social, stating that “Anybody that loves and believes in the United States of America is in favor of Tariffs,” while dismissing critics as being “controlled by China, or other foreign or domestic companies.”
Canada’s Prime Minister Justin Trudeau responded with a retaliatory 25% tariffs on $106.5 billion worth of U.S. goods. China’s Ministry of Commerce said it would challenge the levies at the World Trade Organization. Meanwhile, Mexican President Claudia Sheinbaum directed her economic team to implement “tariff and non-tariff” defensive measures.
As of writing, Bitcoin is trading at $95,104, according to CoinMarketCap. Market analysts are now closely monitoring Bitcoin’s $90,000 support level. A drop below this threshold could trigger further selling, potentially pushing prices toward $80,000.
The cryptocurrency market’s sharp reaction highlights its increasing connection to broader economic concerns despite its original purpose as a hedge against traditional market instability.
