Bitcoin has fallen below $100,000 for the first time in six days after U.S. President Donald Trump signed an executive order imposing tariffs on imports from China, Canada, and Mexico. The decision, aimed at pressuring these countries over immigration and drug control issues, has sparked immediate retaliation, sending shockwaves through financial markets—including crypto.

According to a statement from the White House on Feb. 1, the new tariffs include a 25% hike on imports from Canada and Mexico, with a 10% increase on Chinese goods. Energy imports from Canada face a reduced 10% tariff. The move, which Trump described as a measure to "hold these countries accountable," has raised concerns about inflation and potential interest rate hikes. Investors typically shift away from volatile assets like crypto during uncertain economic conditions.

In response, Canadian Prime Minister Justin Trudeau announced a 25% tariff on $106.5 billion worth of U.S. goods. China’s Ministry of Commerce vowed to file a complaint with the World Trade Organization and implement countermeasures. Meanwhile, Mexican President Claudia Sheinbaum revealed a "Plan B" strategy involving tariff and non-tariff measures to protect Mexico’s economy.

Following the news, Bitcoin dipped below the crucial $100,000 level, hitting $99,111 before recovering slightly to $99,540, according to CoinMarketCap. Data from CoinGlass shows that around $22.7 million in long positions were liquidated in the past four hours.

The crypto community remains divided on the long-term impact of the tariff war. Dan Gambardello of Crypto Capital Venture dismissed fears, citing ongoing Bitcoin accumulation by major players like BlackRock. However, Adam Cochran of Cinnaeamhain Ventures argued that Bitcoin is too closely tied to global markets to escape economic fallout.

With tensions escalating, the market braces for further volatility as investors assess the true impact of Trump’s trade war.