Bitcoin News: Bitcoin Tumbles Below $100K Following Trump's Tariff Announcement on Canada, Mexico, and China

In a dramatic weekend for financial markets, Bitcoin's price dipped below the $100,000 mark as President Donald Trump enacted substantial tariffs on imports from Canada, Mexico, and China, intensifying fears of a global trade war.Impact of Tariffs on Cryptocurrency MarketsReacting to the President's Saturday announcement, the cryptocurrency markets experienced significant volatility. The tariffs, which include a 25% levy on nearly all imports from Mexico and Canada and a 10% tariff on Chinese goods, came into effect on Tuesday as a measure to combat the influx of illicit drugs into the United States.With traditional markets closed over the weekend, cryptocurrencies bore the full impact of the immediate risk-off sentiment among investors. Bitcoin, after reaching highs of $106,000 just over a day prior, fell to an intraday low of $98,141 on Sunday.Altcoins Suffer Even Greater LossesAltcoins felt the strain even more acutely than Bitcoin. Ethereum (ETH), XRP, and Solana (SOL) saw declines ranging from 6% to 8%, while the broader CoinDesk 20 Index dropped by 4.8%. The sharp downturn highlights the sensitivity of the crypto market to geopolitical events and macroeconomic shifts.Market Reactions and Political ResponsesThe new tariffs will remain indefinitely until the President deems the drug trafficking issue resolved. This decision has prompted sharp responses from affected countries, with Canadian Prime Minister Justin Trudeau promising a "forceful and immediate response" if the U.S. proceeded with the tariffs.Liquidations Spike Amidst Market TurbulenceThe price drop led to significant liquidations across the crypto market, with coinglass.com reporting over $554 million in liquidations on Sunday alone. Bitcoin long positions constituted $95.66 million of these, underscoring the high stakes and speculative nature of current market dynamics.Looking Ahead: The Future of Bitcoin and Trade RelationsAs the market adjusts to the new trade landscape, the ongoing developments will be crucial for investors to monitor. The situation remains fluid, with potential for further disruptions or a recovery if geopolitical tensions ease, according to CoinDesk.