Cryptocurrency markets faced significant pressure on Monday as escalating international trade disputes triggered a broad selloff in risk assets. Bitcoin, the leading digital currency, dropped to $94,476, reaching a three-week low of $91,441 during Asian trading hours.
The downturn extended beyond Bitcoin, with Ether experiencing a dramatic 24% decline to $2,494, returning to price levels not seen since September. The cryptocurrency market’s reaction came in response to newly announced trade measures from the White House.
The market turbulence follows President Donald Trump’s declaration of substantial tariffs on key trading partners: 25% on Mexican and Canadian imports, alongside 10% tariffs on Chinese goods. Both North American neighbors announced plans for countermeasures, while Chinese officials indicated they would contest the tariffs through World Trade Organization channels.
Market analysts note that cryptocurrency trading, which continues through weekends when traditional markets are closed, often serves as an early indicator of investor sentiment during major economic developments.
“Cryptocurrency markets have become a key barometer for weekend risk assessment,” noted Chris Weston of Pepperstone, highlighting the digital asset market’s role as a risk proxy during off-hours trading.
The decline represents a significant shift from January’s record high of $107,071, achieved during President Trump’s inauguration. Despite campaign promises to establish the United States as a global cryptocurrency leader, some investors express disappointment with the pace of regulatory reform.
The market reaction presents a notable contrast to the post-election period, when Bitcoin gained 40% amid optimism for crypto-friendly policies. This optimism followed a remarkable shift in Trump’s stance on digital assets, transitioning from previous skepticism to active support during his campaign.
Recent administrative actions, including the establishment of a cryptocurrency working group and plans to explore a national digital asset reserve, underscore the evolving relationship between government policy and cryptocurrency markets.
