February 2, 2025 – Bitcoin (BTC) and the broader crypto market faced heavy losses as US President Donald Trump’s new tariffs on Canada, Mexico, and China spooked investors. BTC dropped below $100,000, while XRP and Cardano (ADA) plunged over 17% and 22%, respectively.
Crypto liquidations have exceeded $8 billion-$10 billion, with Bybit alone recording $2.1 billion in liquidations over 24 hours, according to CEO Ben Zhou. The turmoil extends beyond crypto, with Trump’s own World Liberty Financial portfolio losing over 20%.
The US plans further tariffs on the EU and key commodities like superconductors, oil, and steel by Feb. 18, increasing fears of prolonged market instability. Analysts argue this confirms Bitcoin as a risk-on asset, vulnerable to macroeconomic shocks.
Economist Alex Krüger warned that aggressive tariffs are “very negative for risk assets,†while crypto analyst Amit Kukreja noted that Bitcoin trades on liquidity, which declines with tariffs.
Despite the panic, some traders see a buying opportunity, expecting Bitcoin to “rise violently†as global economic uncertainty escalates. With markets on edge, all eyes are on BTC’s next move.
Source: Cointelegraph
