US stock market futures fell sharply after President Trump announced new trade tariffs on Canada, Mexico, and China. On February 3, Nasdaq 100 futures dropped by nearly 2.7%, while other indices like the Russell 2000 and Dow Jones Industrial Average also saw declines of 3.2% and 1.5% respectively. The tariffs, imposed at 25% on imports from Canada and Mexico and 10% on China, are set to take effect on February 4. Financial analysts, including George Saravelos from Deutsche Bank, indicated that the markets might need to significantly adjust to the heightened ‘trade war risk premium.’ As a result of these tensions, nearly $450 billion left the crypto markets within 24 hours, leading to a 13% drop in total market capitalization to $3.12 trillion, the lowest since November. Despite the downturn, some analysts believe that these trade issues could eventually lead to a rise in Bitcoin prices due to a weakening dollar.

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