Bitcoin lost 10 %with the global customs duty war initiated by US President Donald Trump. The decline was felt harshly not only for Bitcoin, but also throughout the crypto currency market.
Why did February 2025 reduced the Bitcoin and crypto money market?
Immediately after President Trump announced that he would bring 25 %customs duties to imports from Canada and Mexico, investors turned to safe port assets. Gold reached 2,800 dollars and saw the highest value of all time, while the US dollar gained 1.3 %.
In the midst of these developments, Bitcoin fell to $ 92,000 on Monday. Bitcoin declined more than 11 %during the weekend, balanced at the UK time at the morning of $ 95,000. On the other hand, Ethereum lost 17 %in the last 24 hours.
With the opening of the US markets, it is foreseen that there may be a large wave of sales in crypto currencies.
Andri Fauzan Adziima, a research analyst at the crypto exchange Bitrue, said Bitcoin could fall up to $ 90,000 if panic sales continue until further clarity in trade policies.
Bitcoin is still a safe port?
Bitcoin usually acts as a risky asset during the uncertainty periods in the markets.
Initially, Bitcoin fell 3 %after Trump announced on Friday. However, sales pressure increased with Canada and Mexico’s retaliation tariffs.
In the last 24 hours, the total value of the crypto currency market decreased by 400 billion dollars, while investors’ positions of more than $ 2.3 billion have been liquidated.
According to analysts, this harsh fall of Bitcoin stems from the correlation of stocks rather than a protection tool against inflation. In contrast, the rise below shows that investors are turning to physical value storage tools instead of speculative assets.
Shunyet Jan, Head of Corporate and Derivative Products of Bybit, said, “The implementation of customs duties increases inflationary concerns. This creates a negative environment for risky assets such as crypto currencies, leading to high interest rates for a long time. ”
Strengthening of the dollar Bitcoin and the crypto money market suppress
The strengthening of the US dollar creates additional pressure on Bitcoin.
“Customs duties strengthen the US dollar against other currencies. Since the majority of crypto assets are priced in dollars, the value of the dollar decreases the value of cryptos against other currencies, ”he added.
However, some analysts continue to remain optimistic for Bitcoin in the long term.
Bitwise’s Alpha strategies President Jeff Park said, “A long -term trade war will be a great opportunity for Bitcoin. You have not yet fully grasped this ”. According to Park, increasing geopolitical tensions and fears of the money unit devaluation may increase the demand for Bitcoin over time.
Gold and dollar is getting stronger
Gold broke a record on Monday to $ 2,800 and increased by 7 %since the beginning of 2025. The US dollar, which is seen as a safe harbor, has reached the highest level of the last two years.
Although the strengthening of the dollar usually suppresses gold prices, according to analysts, investors turn gold against inflation protection and geopolitical risks. “There are great concerns about financial stability. The safe port charm of gold is getting stronger in periods when there are large -scale market risks ”.
