
Bitcoin (BTC) plummeted to an intraday low of $91,281 as markets crashed following the imposition of tariffs on Canada, Mexico, and China by the Trump administration.
The flagship cryptocurrency has recouped some losses and is trading just above the $95,000 mark, down nearly 3%. Canada and Mexico have announced retaliatory tariffs against the US, with markets rattled by the prospect of an escalating trade war.
BTC Leads Selloff As Markets Slump
Crypto markets plummeted on Monday as investors began offloading risky assets after US President Donald Trump imposed sweeping tariffs on imports from China, Mexico, and Canada. Markets crashed as a result, as BTC plunged below $92,000 on its way to an intraday low of $91,281. BTC is struggling around the $95,000 level as buyers struggle to build momentum. Analysts fear Trump’s tariffs on countries are impacting the entire market, with Caroline Bowler, CEO of BTC Markets, stating,
“Trump’s tariff war is impacting the whole market. Concerns about trade wars and stagflation, triggering recessions, are cascading across altcoins and Bitcoin.”
BTC and the larger crypto market decline marks a stark reversal from the optimism surrounding Trump’s pro-crypto rhetoric and election victory. Trump also signed an executive order to establish guidelines for crypto and explore a national stockpile. Ethereum saw far more significant losses, with the altcoin down 20% at one point.
“Ether is being battered more than Bitcoin, Solana, and Ripple mainly because there is an expectation that the latter are more likely to be included in a US digital asset stockpile.”
The turmoil comes before a crucial week for markets, with prominent S&P 500 companies set to report results. Data from Coinglass showed over $2 billion in crypto liquidations.
“We're already seeing signs of heightened market volatility, as BTC's 30-day implied volatility has risen by 4% to 54% in the wake of these tariffs and the broader economic uncertainty.”
MicroStrategy Plummets Over 5%
Thanks to BTC's decline, MicroStrategy (MSTR) dropped over 5% during premarket hours. As a result, MSTR fell 5.81% to $315 per share. This followed the company’s announcement of 8% 7.3 million shares with a strike price of $80 a piece, with settlement expected on February 5. MicroStrategy has been buying BTC as part of an aggressive strategy and added over 10,000 BTC this week, taking its total holdings to 471,107 BTC.
Bitcoin (BTC) Price Analysis
Bitcoin (BTC) began declining on Friday, with President Donald Trump signing an order imposing 25% tariffs on imports from Canada and Mexico on Saturday. Trump also imposed a 10% duty on China, which will come into force on Tuesday. According to Jeff Park, Head of Alpha Strategies at Bitwise Asset Management, a sustained tariff war could be “amazing” for Bitcoin in the long run due to a weakening of the dollar. Investors are watching $90,000 as a key support level for the asset. However, some analysts have warned of a larger pullback towards $80,000 if bears manage to drive the price below $90,000. BTC surged to a new all-time high on January 20 after Donald Trump was sworn in as president but has failed to build on initial momentum and has now slipped below the key $100,000 price level.
Trump has said he plans to impose tariffs on other nations as well, including the EU. The market reaction to tariffs has offset the initial euphoria around a Trump presidency and clear crypto regulations. The crypto market has seen one of the biggest drops in recent times, with its market cap falling to $3.04 trillion at one point before recovering.
BTC has faced significant volatility in recent sessions, starting with a drop to an intraday low of $97,766 on Monday thanks to market jitters caused by DeepSeek. The price recovered from this level to reclaim $100,000 and settle at $102,064. Buyers attempted a recovery on Tuesday as BTC reached an intraday high of $103,295. However, it lost momentum after reaching this level and dropped 0.69% to $101,262. Buyers returned to the market on Wednesday as BTC rose 2% to $103,666. The flagship cryptocurrency surged to an intraday high of $106,296 on Thursday before settling at $104,559.
Source: TradingView
Sentiment began changing on Friday as BTC fell nearly 2% to $102,616. Sellers retained control on Thursday as the price slipped below the 20-day SMA and settled at $101,041. Bearish sentiment intensified on Sunday as BTC fell below $100,000 and the 50-day SMA after a drop of over 3% and settled at $97,882. With the broader market tanking thanks to tariffs, BTC plunged to an intraday low of $91,281 during the ongoing session. However, it has recouped some losses to climb above $95,000. BTC is trading around $95,600, down nearly 2.50%.
Buyers must prevent a decline below $95,000 and look to reclaim $100,000 for sentiment to change. If sellers retain control, the price could slump to $90,000. If this level is breached, BTC could see a deeper correction that could drive it to $80,000. On the other hand, buyers will look to push above the 50-day SMA and reclaim $100,000. The RSI is currently at 38 and pointing downwards, indicating growing bearish pressure. The MACD is also bearish, meaning there could be a further downtrend unless market sentiment changes.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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