As of February 2, 2025, Bitcoin (BTC) has dropped below $100,000, reacting to Canada’s announcement of imposing a 25% tariff on U.S. imports, following similar moves from Mexico and escalating tensions triggered by previous U.S. tariffs on Canadian and Mexican goods. The situation marks a resurgence in trade war sentiments and concerns regarding mass deportations of migrants in the U.S., which are expected to increase inflationary pressures globally. The broader cryptocurrency market reflected this downward trend, with the CoinDesk 20 Index also declining over 2%. The trade conflict has raised apprehensions about potential delays in anticipated Federal Reserve rate cuts, contributing to BTC's price drop, which serves as a risk-off indicator for traditional assets.

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