The White House's announcement of substantial tariffs on Mexico, Canada, and China has stifled the recent Bitcoin rally for the second consecutive day. On January 31, 2025, President Trump stated that 25% tariffs on Mexico and Canada would commence on February 1. Following this news, Bitcoin peaked at over $106,000 but quickly dropped to around $104,000. While there had been speculation about a potential delay in the tariffs until March 1, the White House dismissed these claims, affirming that the tariffs would indeed take effect as scheduled. As a result, Bitcoin's value fell to just below $103,000, marking a 2.3% decrease within 24 hours. Meanwhile, traditional markets saw U.S. stocks dip from earlier gains but still close moderately higher. This ongoing volatility reflects the strong correlation between cryptocurrency markets and governmental economic policies, as traders react swiftly to developments in regulation and trade tariffs.

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