Bitcoin Drops 8% to $93K as Asia Awakens to Trump's Trade War

As Asia begins its trading day, BTC's weakness likely reflects fears that a trade war could freeze global growth

Updated Feb 3, 2025, 6:12 a.m. UTCPublished Feb 2, 2025, 8:50 a.m. UTC

Bitcoin (BTC), the leading cryptocurrency by market value and the only macro asset open for trading over the weekend, opened Asia's trading week

Canadian Prime Minister Justin Trudeau said the country would impose 25% tariffs on U.S. goods, from drinks to appliances, after President Donald Trump imposed a 25% tariff on Canadian and Mexican imports and 10% on goods from China. China said it would file a case against the U.S. at the World Trade Organization while vowing unspecified countermeasures to safeguard its interests.

The renewed trade war, coupled with mass deportations of illegal migrants from the U.S., could add to inflation, weakening the case for speedy Fed rate cuts. BTC's price weakness likely reflects these concerns and offers risk-off cues to traditional risky assets. The broader crypto market followed BTC lower, with the CoinDesk 20 Index falling over 2%.