Cryptocurrency Prices Fall After Trump Introduces Tariffs

(Patria) - Cryptocurrency prices fell today, with bitcoin at its lowest level in three weeks and ether at its lowest level since the beginning of September.

Fear of a global trade war has pushed investors to the brink and away from riskier moves.

Bitcoin, the world's largest and best-known cryptocurrency, fell to $94,476 this morning in Asia, touching a three-week low of around $91,441.

Ethereum fell by about 24% and returned to levels last seen at the beginning of September 2024. The last time one ether cost $2,494.33.

The crypto market crash comes after U.S. President Donald Trump imposed tariffs of 25% on Mexican goods and most imports from Canada, and 10% on goods from China over the past weekend, starting Tuesday.

Canada and Mexico, the US's two largest trading partners, immediately promised retaliatory measures, and China said it would challenge Trump's tariffs at the World Trade Organization.

Cryptocurrencies are traded 24 hours a day, including weekends, and have recently been sensitive to the broader market sentiment. Investors are concerned that tariffs could harm company growth and earnings, and could cause inflation.

Bitcoin reached a record high of $107,071 on January 20, when Trump was sworn in as the 47th President of the United States, and has risen 40% since the election in early November in the hope that the Trump administration would adopt cryptocurrency-friendly regulations.

Trump, who once called cryptocurrencies a scam, embraced digital assets during his campaign, promising to make the US the "crypto capital of the planet".

Last month, Trump ordered the establishment of a cryptocurrency task force tasked with proposing new regulations on digital assets and exploring the creation of a national cryptocurrency reserve.