Bitcoin (BTC) dropped 8% as Asia’s trading day began, likely driven by concerns over the reintensified trade war and its potential to stifle global economic growth.
The latest round of tariffs, introduced by U.S. President Donald Trump, saw 25% levies imposed on goods from Canada and Mexico, alongside a 10% tariff on Chinese imports. In retaliation, Canadian Prime Minister Justin Trudeau announced tariffs on U.S. goods, further escalating tensions. China also hinted at filing a case against the U.S. with the World Trade Organization, signaling its readiness to fight back.
This resurgence of trade hostilities, combined with broader geopolitical instability, has raised fears of inflation and delayed rate cuts by the Federal Reserve, pushing Bitcoin and other risk assets lower. The cryptocurrency market followed suit, with the CoinDesk 20 Index seeing a decline of over 2%, as investors sought safer assets amid the growing uncertainty.
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