Trump's tariffs shook the markets, causing Bitcoin to drop below $100,000.

The cryptocurrency market has collapsed by 20–30%: Bitcoin has dropped to $91,441.89, while Ethereum has fallen to $2,494.33.

According to Reuters.

This value of cryptocurrencies is the lowest since September of last year, the agency notes. The primary cause of the rapid decline in cryptocurrencies was a new escalation in the trade war initiated by the Trump administration.

The U.S. President has imposed:

• 25% tariffs on goods from Canada and Mexico;
• 10% tariffs on imports from China.

These measures triggered an immediate response:

• Canada and Mexico announced similar tariffs against the U.S.;
• China declared its intention to challenge Trump's decision at the World Trade Organization (WTO).

As a result of these actions, financial markets, particularly the cryptocurrency market, came under significant pressure. Investors began to panic and withdraw from risky assets, which include digital currencies, writes Reuters.

As noted by Chris Weston, head of research at Pepperstone, cryptocurrencies have become a sort of "risk indicator," as they trade 24/7 and are the first to respond to global changes.

The price collapse is also linked to investor disappointment in Trump's cryptocurrency policies. During his campaign, he promised to make the U.S. the "crypto capital of the world," created a special working group to develop new regulations for digital assets, and even considered the possibility of forming a national cryptocurrency reserve. However, currently, there are no real actions that would promote the development of the crypto market.

In the short term, the crypto market may remain under pressure. However, if the situation stabilizes, Bitcoin and other digital assets could recover quickly, the agency writes.

Background. Earlier, Mind reported that in 2024 Bitcoin more than doubled due to the approval of exchange-traded funds tied to its spot price by U.S. market regulators and optimism regarding the easing of regulatory hurdles following Donald Trump's return to the White House.