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The trade war declared by Donald Trump has seriously affected the price of bitcoin. On March 4, 2025, 25% tariffs on goods from Mexico and Canada came into effect, causing a massive sell-off of digital assets and a collapse in bitcoin's market value. Since early February, the cryptocurrency has lost about 35%, leading to a drop in its price to $79,122 and the cryptocurrency market to a 16-week low.
As noted by experts from Kobeissi Letter, the trade war and the economic instability resulting from the new tariffs have negatively impacted all markets. Since January 20, when the White House administration outlined its foreign economic priorities, cryptocurrency markets have lost over $800 billion.
Previously, bitcoin and gold were seen as assets capable of hedging investment risks. However, in conditions of trade wars, these two assets have started moving in opposite directions. The cryptocurrency is losing stability, while gold continues to show growth. Speculative investors, having experienced volatility in cryptocurrency markets, are actively selling off cryptocurrencies and returning to the US dollar.
Analysts claim that the US dollar, in conditions of trade wars, becomes the "safest risky asset" due to its stability amid global economic upheavals.
These events also affected crypto companies, whose stocks suffered due to the introduction of tariffs. Previously, the Bits.Media platform published a review on the public's negative reaction to Trump's economic policy, which significantly complicated the financial situation in the crypto industry.
Thus, the trade war and economic uncertainty caused by the tariffs have put serious pressure on the cryptocurrency market, leading to its further instability and potential decline in investor interest.