Crypto Markets React to Tariff Updates
It’s a case of déjà vu in the cryptocurrency world as a promising report regarding a delay in tariffs was swiftly contradicted by the White House. To recap, President Trump announced on Thursday that he would impose a substantial 25% tariff on imports from Mexico and Canada, effective Saturday, February 1. This announcement initially propelled bitcoin (BTC) to rally above $106,000, but the optimism was short-lived as the cryptocurrency swiftly reversed course, dropping approximately 2% to settle around the $104,000 mark. Concurrently, U.S. stock markets experienced a pullback from earlier gains, though they ultimately managed to finish the trading session in positive territory.
On Friday, a report from Reuters suggested that the implementation of these tariffs might be postponed until March 1, allowing countries to apply for exemptions on specific exports. However, the White House quickly labeled this report as “false.” Trump’s Press Secretary, Karoline Leavitt, clarified to reporters that the tariffs—along with a 10% levy on China—would indeed take effect as originally scheduled.
As seen on Thursday, bitcoin had once again surged above the $106,000 threshold and appeared poised to challenge its previous record high of $109,000. Yet, the latest tariff news sent the digital asset tumbling again, with bitcoin trading just below $103,000 at the time of this report, marking a 2.3% decline over the past 24 hours. In a broader context, the CoinDesk 20 Index also saw a dip, off by 1.3% during the same period, though it managed to outperform the market largely due to a 1.2% advance in ether (ETH).
Meanwhile, in traditional financial markets, U.S. stocks remained modestly higher but were significantly off their earlier session highs, reflecting the ongoing uncertainty and volatility across various sectors.
