
Bitcoin Tumbles for Three Straight Days Amid Canada’s Trudeau Clashing with Trump Over Tariffs
Bitcoin’s Decline in Value Continues Amidst Global Trade Tensions
Escalating Tariffs and Economic Challenges Weaken Crypto Markets
Updated February 2, 2025, 8:57 a.m. UTC
Published february 2, 2025, 8:50 a.m. UTC
Bitcoin, the premier cryptocurrency in terms of market capitalization and notably the only significant financial asset traded extensively over weekends, persisted below the $100,000 mark for the third consecutive day.This downturn occurs as Canada escalates its response against new U.S. trade policies by adopting matching tariffs.
In a significant retaliation move mirroring Mexico’s earlier decision, Canadian Prime Minister Justin Trudeau announced that Canada would set up a hefty 25% tariff on an array of imported U.S products ranging from beverages to household appliances following president Donald Trump’s imposition of similar tariffs on imports from Canada and Mexico as well as a further 10% tariff on chinese goods.The situation intensified as China confirmed plans to challenge these tariffs at the World Trade Organization (WTO) while promising to take retaliatory steps necessary to protect its own economic interests.
These recent developments in international trade are believed to exacerbate inflationary pressures which hinder optimistic speculations regarding swift interest rate cuts by the Federal Reserve—jeopardizing financial stability even more; fears that seem vividly reflected in Bitcoin’s waning strength which could signal investors migrating away from typically riskier assets.Suiting such fears appropriately is how swiftly CoinDesk’s Top-20 cryptocurrencies index dipped beyond a margin exceeding two percent.
The interactions among escalated global trade conflicts coordinated with policy decisions aimed at controlling illegal immigration through mass deportations especially elevate uncertainty around economic recovery paths worldwide —all posing further risks for digital currencies like Bitcoin alongside conventional equity markets.