The worth of bitcoin dropped to its lowest degree because the finish of 2024 after President Donald Trump imposed aggressive commerce tariffs over the weekend.
The cryptocurrency plummeted from $100,000 to as little as $91,000 on Sunday, earlier than stabilising at round $95,000 on Monday morning.Â
The worth of bitcoin has elevated considerably since Trump’s election in November, breaking the $100,000 barrier in early December earlier than reaching a excessive of $108,000 final month.
Now, some speculators are taking their cash out of bitcoin following the announcement on Saturday that Trump could be introducing 25 per cent tariffs on Mexico and Canada, and 10 per cent on China.
All three international locations pledged retaliatory measures, prompting fears of a commerce battle, which might have an effect on each earnings and economies.Â
Tariffs spark dump: The President’s commerce tariffs have spooked marketsÂ
‘The prospect of a full-blown commerce battle has spooked buyers as they weigh up the prospect of widespread retaliation by international locations on the receiving finish of Donald Trump’s tariff frenzy,’ says Russ Mould, funding director at AJ Bell.
‘Affected international locations aren’t going to take the hit mendacity down and a tit-for-tat state of affairs is now wanting actual. That might lead to greater inflation and put a cease to additional rate of interest cuts in the interim’.Â
It has led to a flight in the direction of safer property, like bonds and gold, on the expense of riskier property like bitcoin and different cryptocurrencies.
Ethereum noticed its greatest fall since September, falling 16 per cent to round $2,500, whereas solana dropped 8 per cent to $196.
Trump’s personal meme coin can be down 17 per cent as we speak to round $17.Â
It marks a pointy turnaround for the asset class that has seen big development since Trump’s election.Â
Bitcoin hit a brand new excessive of $108,000 final month, with buyers hoping the brand new administration will embrace cryptocurrencies.Â
Regardless of its rising acceptance, significantly since Trump’s election and fans contemplating it hedge in opposition to volatility, cryptocurrencies are nonetheless thought of a dangerous asset.
Elsewhere, European markets opened decrease on Monday, with the primary indices in France and Germany each opening down about 2 per cent, whereas the FTSE 100 fell 1.2 per cent.
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