Trump tariffs hit Bitcoin hard, stirring panic in global markets

Bitcoin depreciated by over 6% after U.S. President Donald Trump signed an executive order imposing new tariff measures on Canada and Mexico while signaling that his administration is considering similar actions against the European Union.

The decline began on Saturday night after Trump enacted a 25% tariff on imports from Mexico and Canada and a 10% tariff on Chinese goods, set to take effect on Tuesday. The U.S. has a trade volume of approximately $1.6 trillion with these three countries.

According to CoinMarketCap, Bitcoin dropped from $100,000 to around $93,000 by 9:00 a.m. (GMT+3), erasing approximately $130 billion from its market capitalization. Other major cryptocurrencies also saw sharp declines, with Ethereum plunging over 20% to $2,500 and Solana falling 7.5% to $195.

Bitcoin faces a 20% probability of dropping to $72,000

According to U.S.-based cryptocurrency platform Derive.xyz, the probability of Bitcoin sliding to $75,000 by Mar. 28 has surged from 10% to 22%.

“The recent tariffs imposed by Trump, including 25% on imports from Mexico and Canada and 10% on Chinese goods, are likely to lead to increased inflation, which could dampen investor sentiment in crypto markets,” Derive stated in an e-mail message.

Meanwhile, El Salvador revoked Bitcoin’s status as legal tender after the congress passed a reformed Bitcoin Act, officially making its use voluntary.

Although Bitcoin is often regarded as a long-term hedge against inflation and economic instability, its short-term price movements resemble those of high-risk assets. As a result, Trump’s tariff-driven trade war could introduce further uncertainty, potentially weighing on Bitcoin’s price.

Investors are now closely watching the $90,000 support level. Analysts warn that if Bitcoin falls significantly below this threshold, a further decline toward $80,000 could be imminent, CNBC reported.

Stock markets in panic following Trump tariffs

On the other hand, stock markets tumbled across Asia, with similar effects expected in other major markets, particularly on the NASDAQ. The U.S. dollar index rose more than 1%, nearing 110 by 9:00 a.m. (GMT+3), while the NASDAQ benchmark index awaits the opening, having closed at 19,627.44 on Friday.

Spot gold, which hit a fresh record above $2,800 per ounce last week, is now signaling a potential depreciation as the stronger dollar makes it more expensive for investors holding other currencies.

Trump’s latest move capped a volatile week for markets, which were already shaken by the debut of DeepSeek’s R1 chatbot. The AI-driven development prompted some investors to reconsider their heavy bets on tech giants in recent years.