The value of bitcoin fell by more than 25 percent compared to January’s record values as Trump’s tariff announcements and the possibility of a trade war are prompting investors to massively sell off digital assets.
Bitcoin and Ethereum each lost seven percent of their value yesterday.
The maximum value of bitcoin was recorded on the day of Donald Trump’s presidential inauguration on January 20th, when bitcoin was trading for more than 105.000 euros, but from that moment until yesterday, it fell by 27 percent.
The executive director of the company BTC Markets, Caroline Bowler, believes that such market sentiment was last recorded in 2022, when during the so-called “crypto winter” the prices of bitcoin and other digital currencies sharply fell due to rising interest rates and problems in the industry.
She believes that the markets are now reacting to geopolitical uncertainty and the possibility of tariffs being introduced in the United States (U.S.).
U.S. President Donald Trump confirmed that tariffs of 25 percent for Mexico and Canada will come into effect on March 4th, along with an additional 10 percent tariff on Chinese imports.
Beijing warned that it would “apply all necessary measures” if the U.S. raises tariffs on Chinese imports.
Earlier this week, Trump also announced tariffs of 25 percent on European cars and other goods, but without specifying a timeframe.
