Key Insights:
- As Trump’s tariffs shake global markets, Bitcoin price crashes below $84K.
- Over $1 billion was liquidated in 24 hours amid extreme volatility.
- Canada and Mexico retaliate with tariffs, fueling economic uncertainty.
Bitcoin price has plummeted below $84,000, erasing billions in market value, as President Donald Trump officially implemented a 25% tariff on Canada and Mexico, alongside a 20% tariff on China. The announcement has rattled global markets, triggering a sharp selloff in cryptocurrencies and stocks.
Crypto Markets in Freefall as Over $1B Gets Liquidated
The cryptocurrency market saw a brutal sell-off, with over $1.07 billion liquidated in the past 24 hours, according to Watcher.Guru. The market downturn follows Trump’s confirmation that the aggressive tariff measures would go live, escalating the risk of a full-scale trade war in North America.
Bitcoin, which was trading around $83,598 at the time of writing, has dropped over 9% in the past week. The broader crypto market has also felt the shockwaves, with Ethereum (ETH) and other major altcoins seeing steep declines.
The Kobeissi Letter reported that just 3% of investors now believe Bitcoin is a reliable hedge against a trade war. This is a stark contrast to previous market cycles when crypto assets were considered a safe haven during economic uncertainty. Instead, investors have flocked to gold, which has seen a surge amid the turmoil.
Stock Market Bloodbath and Global Panic
The financial markets have responded violently to Trump’s tariff announcement. The Dow Jones Industrial Average (DJI) plunged by 649.67 points, while the S&P 500 and Nasdaq saw sharp declines. Technology stocks, including Nvidia (NVDA), suffered heavy losses. NVDA dropped below its February 3rd post-DeepSeek low despite reporting record revenue of $39.3 billion.
The selloff intensified after reports confirmed that Canada and Mexico retaliated immediately with their own tariffs. Canadian Prime Minister Justin Trudeau declared that his government would impose 25% tariffs on $107 billion worth of U.S. goods, with the first wave hitting $21 billion after midnight.
Meanwhile, Ontario Premier Doug Ford warned that auto plants in Michigan could shut down within a week due to supply chain disruptions.
In addition to North America, China has also vowed countermeasures, with Beijing calling the U.S. tariffs “unreasonable and groundless.” Analysts expect China to target American agricultural exports, which could further disrupt global supply chains.
Bitcoin Price Faces Critical Technical Levels Amid Volatility
Bitcoin’s price movements have been highly erratic in recent weeks, with the cryptocurrency experiencing extreme volatility. Market expert Rekt Capital noted that BTC recently closed two major CME price gaps, one between $92,800 and $94,000 and another between $78,000 and $80,700.
While some analysts see these closures as a sign of stabilization, others warn that Bitcoin remains at risk of further downside. The latest price action suggests that BTC could form another gap between $84,650 and $94,000, potentially setting up another turbulent week for traders.
On-chain analyst Miles Deutscher highlighted that Bitcoin’s recent 28.5% drawdown is one of the largest in the current market cycle. Similar drops have historically provided buying opportunities, but the ongoing macroeconomic uncertainty could delay a sustained recovery.
With Trump’s tariffs now in effect, markets remain on edge. The U.S. dollar has gained strength, but investors are watching for potential ripple effects as trade tensions escalate. If global economies continue retaliatory measures, the fallout could trigger a deeper financial crisis, affecting both traditional and digital assets.
Bitcoin price bulls will need to reclaim key levels above $90,000 to signal a potential recovery, but with uncertainty at an all-time high, traders remain cautious.
Disclaimer
In this article, the views and opinions stated by the author or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.
