By Anjali Kochhar
Bitcoin, the world’s largest cryptocurrency, slid below the crucial $100,000 mark on Monday, reaching a three-week low as global markets reacted to fresh U.S. trade tariffs. Investors, wary of economic uncertainty, moved away from risky assets, triggering a sharp decline in crypto prices.
Bitcoin hit a low of $91,441.89 during Asian trading hours before recovering slightly to $94,476.18. Meanwhile, Ether, the second-largest cryptocurrency, plunged 24% to $2,494.33, marking its lowest level since early September.
Tariffs Shake Global Markets
Over the weekend, U.S. President Donald Trump imposed 25% tariffs on imports from Mexico and Canada, along with a 10% levy on Chinese goods, effective Tuesday. Canada and Mexico, the United States’ top trading partners, vowed swift retaliatory measures, while China announced plans to challenge the tariffs at the World Trade Organisation.
This escalation in trade tensions rattled global financial markets, pushing investors toward safer assets while driving down equities and cryptocurrencies. “Crypto is really the only way to express risk over the weekend, and on news like this, it acts as a risk proxy,” said Chris Weston, head of research at Pepperstone.
Bitcoin’s Recent Rally Fades
Bitcoin’s decline follows a strong rally after Trump’s election victory in November. The cryptocurrency hit an all-time high of $107,071.86 on January 20, the day Trump was sworn in as the 47th U.S. President. Investors had hoped for a pro-crypto stance from the new administration, especially after Trump who once dismissed crypto as a scam rebranded himself as a supporter, pledging to make the United States the “crypto capital of the planet.”
As part of his campaign promise, Trump recently ordered the formation of a cryptocurrency working group, tasked with proposing new digital asset regulations and exploring the creation of a national cryptocurrency stockpile. However, the recent downturn suggests that investors are growing impatient, expecting clearer regulatory action.
Key Support Levels for Bitcoin
With Bitcoin now trading below $100,000, analysts are closely monitoring critical support levels. According to Investopedia, key thresholds to watch include $92,000, $87,000, and $74,000. On the upside, Bitcoin must reclaim $106,000 to regain bullish momentum.
Market Sentiment and Future Outlook
The sharp decline in crypto prices underscores the asset class’s sensitivity to global macroeconomic policies. As the trade war intensifies, the uncertainty surrounding global markets could continue to drive volatility in Bitcoin and other digital assets.
For now, investors are treading cautiously, keeping an eye on further developments from the Trump administration and global trade partners. With crypto markets reacting in real-time to geopolitical shifts, traders should brace for continued price swings in the weeks ahead.
About the author
Anjali Kochhar covers cryptocurrency and blockchain stories in India as well as globally. Having been in the field of media and journalism for over three years now, she has developed a sharp news sense and works hard to present information that goes beyond the obvious. She is an avid reader and loves writing on a wide range of subjects.