#Write2Earn Trump Rekindles Trade War, Bitcoin Drops Below 100K USD

Bitcoin has significantly decreased, dropping below the symbolic threshold of $100,000 for the first time since January 27. This decline occurs amid rising trade tensions, following Trump's announcement of new tariffs targeting China, Canada, and Mexico, which prompted an immediate reaction from these countries.

Bitcoin Plummets Below 100K USD After Trump Implements Measures

U.S. President Donald Trump has signed a major tariff decree on imports from three key countries. This measure includes a 25% tax increase on imports from Canada and Mexico, while products from China face a 10% increase.

Only Canada's energy sources benefit from a reduced tax rate of 10%. According to the White House, this decision aims to compel these countries to intensify their fight against illegal immigration and the trafficking of illegal substances, particularly fentanyl.

Financial markets reacted quickly to this announcement, with bitcoin dropping to a low of $99,111 before stabilizing around $99,540. Data from CoinGlass shows that this decline resulted in the liquidation of approximately $22.70 million in long positions within just four hours.

Analysts are concerned that these tariff measures could contribute to rising inflation, potentially causing the Federal Reserve to maintain high interest rates. This perspective often encourages investors to prefer traditional assets over cryptocurrencies.

International Reaction Unified and Divided Perspectives

In response to these measures, targeted countries have not hesitated to retaliate. Canadian Prime Minister Justin Trudeau announced immediate retaliation by imposing a 25% tax on $106.5 billion worth of U.S. goods.

China promised to bring this issue to the WTO, while Mexican President Claudia Sheinbaum ordered the implementation of a 'Plan B' that includes various retaliatory measures.

Within the cryptocurrency community, there are varying opinions on the long-term impact of this situation.