On February 2, 2025, the cryptocurrency market reacted sharply to new tariffs imposed by U.S. President Donald Trump. Effective immediately, a 25% tariff on imports from Canada and Mexico and a 10% tariff on imports from China have been enacted. Following this announcement, Bitcoin (BTC) fell below the $100,000 mark, trading at $99,540, marking a significant shift since it had been as high as $106,000 just 24 hours earlier.
The crypto market is experiencing a risk-off sentiment, with Bitcoin down 2% and altcoins like Ether (ETH), XRP, and Solana (SOL) declining by 6%-8%. The CoinDesk 20 Index reported a 4.8% drop. Approximately $22.70 million in long positions were liquidated in the four hours leading up to this publication.
The crypto industry remains divided on the long-term implications of these tariffs. While some believe the tariffs will negatively impact the crypto market, others argue that major institutional investors, like BlackRock, continue to accumulate Bitcoin and Ethereum despite the volatility.