Bitcoin (BTC) fell by 8% as Asia’s trading session opened, likely in response to the heightened fears surrounding the escalating trade war and its potential impact on global economic stability.
U.S. President Donald Trump’s new tariffs — 25% on goods from Canada and Mexico and 10% on Chinese imports — ignited further tensions. In response, Canadian Prime Minister Justin Trudeau announced retaliatory tariffs on U.S. products, ranging from appliances to beverages, while China expressed its intent to challenge the tariffs at the World Trade Organization, pledging countermeasures.
These developments have sparked concerns that the trade war will contribute to rising inflation and hinder the likelihood of aggressive interest rate cuts by the Federal Reserve. Bitcoin’s decline, accompanied by broader losses in the cryptocurrency market, signals growing risk aversion among investors. The CoinDesk 20 Index dropped more than 2%, reflecting the overall retreat from riskier assets as geopolitical tensions rise.
