Bitcoin (BTC), the leading cryptocurrency by market value, continues to experience weakness as it remains below the $100,000 mark, marking three consecutive days of sluggish trading. This downturn coincides with escalating trade tensions, particularly as Canada has joined Mexico in announcing retaliatory tariffs against the United States.
Canadian Prime Minister Justin Trudeau has declared a 25% tariff on various U.S. goods, including drinks and appliances, following President Donald Trump’s imposition of a 25% tariff on Canadian and Mexican imports and a 10% tariff on goods from China. In response, China has announced plans to file a case against the U.S. at the World Trade Organization and is vowing to implement unspecified countermeasures to protect its interests.
The revival of the trade war, combined with the ongoing mass deportations of undocumented immigrants from the U.S., is raising inflationary concerns, which could complicate expectations for prompt interest rate cuts by the Federal Reserve. Consequently, BTC’s price weakness appears to mirror these economic anxieties, acting as a risk-off indicator for traditional asset markets. This trend also has a ripple effect on the broader cryptocurrency market, with the CoinDesk 20 Index experiencing a decline of over 2%.
