The global financial landscape was thrown into disarray while US President Donald Trump has rekindled his trade gaming book, imposing radical prices in Canada, Mexico and China.
This decision sent traditional spiral markets and sparked a clear sale in cryptocurrencies, with Bitcoin (BTC) and Ethereum (ETH) carrying the weight of the benefits.
Trump’s decree, signed on Saturday, introduced a 25% rate on imports from Canada and Mexico, alongside a 10% levy from Chinese products. These measures are based on the existing prices of its first presidency, targeting industries ranging from cars to electronics and agriculture. The extent of the impact is huge, affecting approximately 1.6 billion of annual trade dollars, equivalent to 5% of American GDP.
Canada has not lost time in retaliation, announcing 25% of prices on more than $ 155 billion in American products. Meanwhile, China alluded to countermeasures, although the details remain rare.
The immediate reaction has been rapid and severe: stock -up contracts have dropped, the main American clues such as the S&P 500 and the Industrial Dow Jones for significant terrain. The US dollar has strengthened against other currencies, including the Canadian dollar, which has reached a 22 -year -old hollow.
Trump prices and impact of cryptography
Trump delays the prices, the relaxation of the markets. The crypto faces a mixed impact: higher mining costs but clearer American rules. Stablecoins gain government support
Cryptocurrencies carry the weight of market disorders
Cryptocurrencies, often announced as “digital” or security active ingredients in completeness during the economic uncertainty, have paradoxically known some of the most steep declines. Bitcoin, the largest cryptocurrency by market capitalization, fell by almost 7% within 24 hours, currently negotiating below $ 93,000 after briefly plunging $ 91,000.
Ethereum was even worse, plunging more than 20% to negotiate below $ 2,500, effectively efforcing all the earnings made since September 2024.
The wider Altcoin market has undergone catastrophic losses, the combined market capitalization of cryptocurrencies outside the top 10 of 11% and briefly flashing a draw of 20%.
According to data from unusual whales, around $ 2.17 billion was liquidated on the cryptography market in the last 24 hours, which has an impact on 728,000 merchants. This crunch liquidity has exacerbated volatility, pushing the lower prices and triggering cascading sales.
The domination of Bitcoin, a metric measuring its share of the total market capitalization of the cryptocurrency, exceeded 62% while investors fled more risky altcoins in favor of relative stability. However, the transaction costs for Bitcoin have dropped to their lowest levels from the 2015 bear market, the signaling has reduced network activity and dismay the confidence of investors.
“The higher prices should also increase consumer prices, potentially to damping available income and discretionary expenses, including investments in digital assets,” said Brn Valentin Fournier analyst.
“The prospect of an prolonged trade war introduces significant uncertainty in global supply chains and economies. This unpredictability discourages investments in volatile assets such as Bitcoin and Ethereum. However, a sustained tariff war could present opportunities for Bitcoin in the long term, “added Fournier.
