CryptocurrenciesBitcoin drops significantly after Trump's tariff crackdown
SDA
3.2.2025 - 09:23
Bitcoin is also coming under pressure in the uncertain financial market environment. This was triggered by the Trump administration's announcement to impose high tariffs on products from Canada, Mexico and China.(symbolic image)
Keystone
In an uncertain stock market environment, risk assets such as Bitcoin are having a particularly difficult time. The cryptocurrency is losing ground in the turmoil surrounding the tariffs imposed by Donald Trump on China, Canada and Mexico. Other blockchain currencies are plummeting even more.
Keystone-SDA
03.02.2025, 09:23
03.02.2025, 09:24
SDA
Triggered by fears of a trade war between the US and other countries, investors are shedding risky assets such as Bitcoin en masse. On Monday morning, one Bitcoin on the Bitstamp trading platform cost less than 92,000 dollars at times. On Friday, the price was still quoted at over 105,000 dollars.
Expert Stephen Innes from asset manager SPI Asset Management fears that the turbulence on the crypto market could spill over into other asset classes. It is not just a crypto sell-off, but investors are selling speculative assets. Those who bought on credit need liquidity in the face of falling prices. Private investors are also likely to sell off more profitable positions because they fear more trouble.
The risk appetite for Bitcoin could therefore be satiated, at least for the time being, according to Timo Emden from Emden Research: "A cocktail of uncertainty, consisting of customs, inflation and interest rate worries, is causing investors to pull out."
In January, when Trump was inaugurated, the price of one Bitcoin had risen to a record of just over 109,000 dollars. Despite the price losses, Bitcoin is still over a third more expensive than before Trump's election as US president in November. Trump has promised to loosen the regulations for cryptocurrencies. He is also in favor of a national Bitcoin reserve for the USA.
Meanwhile, the rest of the crypto market is also experiencing a sell-off. Ether, for example, the second-largest cryptocurrency by market capitalization, was down 16% on the previous day at USD 2597.