Bitcoin Faces Setback as Tariff Announcement Dampens Market Sentiment
Bitcoin (BTC) took a hit on Saturday after the White House officially confirmed the imposition of 25% tariffs on Mexico and Canada, effective February 1, which led to a swift reversal in the market.
The cryptocurrency had surged above $106,000 earlier in the week but quickly dipped by 2% following the announcement, dropping to approximately $104,000. U.S. stock markets also retreated from their earlier gains, though they still managed to finish the day in positive territory.
This dip came after a Reuters report suggested that the tariffs might be delayed until March 1, providing room for countries to request exemptions for specific goods. However, the White House quickly dismissed the report as inaccurate, with Press Secretary Karoline Leavitt reaffirming that the tariffs, which include a 10% levy on China, would go into effect as scheduled.
Bitcoin briefly regained its footing above $106,000 before the tariff news sent it tumbling again, now trading just under $103,000, reflecting a 2.3% decline over the past 24 hours.
In broader market movements, the CoinDesk 20 Index showed a 1.3% drop, although Ethereum (ETH) managed to buck the trend with a modest 1.2% increase. Traditional stock markets also saw a decline from their highs but still ended the session modestly up.
