BTC Price Plummets 8% to $93K as Asia Reacts to Trump’s Trade War Chaos

"BTC Drops 8% to $93K Amid Trump's Trade War Turmoil in Asia"

Major cryptocurrencies fell sharply as Asia's trading week began, with BTC down 8%, ETH down nearly 20%, and XRP down 28%.

Rachel Patel5 hours agoLast Update : 5 hours ago

www.coindesk.com

Major cryptocurrencies, including Bitcoin (BTC), Ether (ETH), Solana’s SOL, and XRP, experienced significant declines as trading began in Asia on February 3, 2025. By mid-morning Hong Kong time, BTC had dropped 8%, trading above $93,100, while ETH fell nearly 20% to $2,500 amid concerns over a trade war initiated by U.S. President Donald Trump.

6 Key Takeaways

Major cryptocurrencies experience significant declines.
Bitcoin down 8%, trading above $93,100.
Ether drops nearly 20%, trading at $2,500.
$1.3 billion in long positions liquidated.
Trade war initiated by Trump with tariffs.
EU vows to respond to imposed tariffs.

Fast Answer: Major cryptocurrencies faced significant declines as Asia began trading on February 3, 2025. Bitcoin (BTC) was down 8% at $93,100, while Ether (ETH) dropped nearly 20% to $2,500. The market correction is attributed to a trade war sparked by U.S. tariffs on Canada and Mexico.

The cryptocurrency market faced a sharp downturn as trading commenced in Asia, with Bitcoin (BTC) leading the decline. The recent market correction is linked to escalating trade tensions following President Trump’s announcement of 25% tariffs on Canada and Mexico. This move has raised concerns among investors about potential economic repercussions.

By mid-morning, key cryptocurrencies showed the following declines:

Bitcoin (BTC): down 8%, trading above $93,100
Ether (ETH): down nearly 20%, trading at $2,500
Solana (SOL): down 13%, trading at $184
XRP: down 28%, trading at $2

According to CoinGlass, approximately $1.3 billion in long positions were liquidated within the last 12 hours, with significant losses in long ether and Bitcoin positions. Market analysts have expressed skepticism regarding the efficacy of tariffs, with some labeling the trade conflict as potentially detrimental to all parties involved. The European Union has indicated a firm response to any tariffs that affect its member states, emphasizing that such measures could lead to unnecessary economic disruption.

In contrast, the U.K. appears to be negotiating a separate arrangement with the U.S., as President Trump suggested that a deal could be “worked out.” Despite criticism, Trump defended his trade policies, claiming that opponents were influenced by external interests, particularly from China. The ongoing situation continues to create uncertainty in both the cryptocurrency market and the broader economy.

Notice: Canadian investors should be aware of the potential impact of U.S. tariffs on the economy, as these measures could affect trade relations and market stability. Stay informed about developments that may influence cryptocurrency values.

The decline in cryptocurrency prices reflects broader economic concerns linked to trade policies. As the situation evolves, market participants are advised to monitor developments closely, as they may significantly influence investment strategies and market conditions.