On February 1, 2025, Bitcoin (BTC) experienced a price decline, falling by 2% to just above $100,000, after President Trump imposed tariffs on imports from Mexico, Canada, and China. The tariffs, which include 25% on goods from Mexico and Canada and 10% on Chinese imports, are set to take effect immediately. Trump justified the tariffs by citing the need to address the influx of illicit drugs into the U.S., particularly fentanyl. As the traditional markets were closed for the weekend, the cryptocurrency market reacted negatively, with altcoins like ether (ETH), XRP, and solana (SOL) suffering losses between 6% and 8%. The overall market is down by 4.8%. Outgoing Canadian Prime Minister Justin Trudeau expressed Canada’s readiness to respond forcefully if the U.S. proceeds with the tariffs. The ongoing trade tensions underline the volatility in the crypto market as investors react to geopolitical risks and economic policies.

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