Bitcoin Drops Near $94K as Asian Markets Brace for Fallout from Trump’s Trade War

As the Asian trading day began, a broad sell-off hit the crypto market, with Bitcoin (BTC), Ether (ETH), Solana (SOL), and XRP all suffering significant losses amid concerns about a potential global trade conflict. By mid-morning in Hong Kong, Bitcoin had dropped 8%, trading just above $93,100, according to CoinDesk Indices data.

BTC appeared to stabilize later, hovering around $93.9K by afternoon, but the downward trend continued for other major assets. Ether saw a 20% decrease, falling below $2,500, while Solana was down 7%, trading at $193. XRP faced the most significant blow, losing 23% and dropping to $2.

The CoinDesk 20 Index, which tracks the largest digital assets, fell nearly 17%, with Trump’s memecoin (TRUMP) also down by 12%. World Liberty Financial (WLFI), a crypto project supported by Donald Trump’s family, saw a 20% decrease in its January investments, as reported by SpotOnChain data.

The market’s decline came on the heels of President Trump’s announcement of a 25% tariff on U.S. imports from Canada and Mexico, igniting fears of a broader trade war. Critics of the tariffs, including the Wall Street Journal’s editorial board, called it “the Dumbest Trade War in History.”

The European Union has threatened retaliation against any tariffs imposed on its members, with Politico quoting a spokesperson who stressed that tariffs disrupt economies and cause inflation. The U.K. appeared to avoid such measures, with Trump suggesting a potential deal could be reached, as reported by the BBC.

Trump, however, dismissed the backlash, using Truth Social to suggest that his critics were being funded by China.