**US trade war* brings down Bitcoin and cryptocurrencies

The cryptocurrency market started the week in decline, with investors reacting to the impact of new tariffs imposed by US President Donald Trump against Canada, Mexico and China.

Bitcoin (BTC) fell below US$$ 100,000 on Sunday and, on Monday morning (3), was trading at US$$ 92,500, accumulating a drop of 8%.

Ethereum (ETH) plummeted almost 20% and is trading below US$$ 2,500, while Solana (SOL) fell 7% to US$$ 193. XRP was one of the worst performers, with a drop of 23%, trading at US$$ 2.

Cryptocurrencies bleed with Trump's tariffs

The turmoil began after Trump announced 25% tariffs on products from Canada and Mexico, in addition to an additional 10% tariff on imports from China.

Justified based on the International Emergency Economic Powers Act, the decision seeks to contain illegal immigration and the fentanyl crisis, according to the US government.

However, economists and political analysts criticize the measure, which has already been called “the stupidest trade war in history” in an editorial in the Wall Street Journal.

The European Union has promised retaliation if the tariffs are extended to countries in the bloc, while Canada and Mexico are already preparing taxes on American products.

Canadian Prime Minister Justin Trudeau announced tariffs on US$$ 155 billion in imports from the United States.

In addition to the direct impact on cryptocurrencies, global markets also felt the weight of the measure. Data from CoinGlass shows that over $$ 1.3 billion in long positions were liquidated in the past 12 hours — $$ 400 million in ETH and $$ 300 million in BTC.

Trump-linked crypto project World Liberty Financial (WLFI) has also been hit, with a 20% drop in investments in January, according to SpotOnChain.

Even the TRUMP memecoin, which often tracks political events involving the former president, fell 12%.*