In response to US President Donald Trump’s expectation that the US will impose tariffs on Canada and Mexico beginning on March 4, Bitcoin (BTC) fell below $90,000 on Monday, prolonging the cryptocurrency market’s 8% decline.
Tuesday saw Bitcoin (BTC) fall below $90,000, continuing the decline in the cryptocurrency market as US President Donald Trump anticipates imposing tariffs on Canada and Mexico beginning on March 4.
The cryptocurrency market fell by almost 8% as a result of investors reducing their exposure to riskier wagers due to uncertainties about how the upcoming tariffs would affect international trade. Bitcoin dropped below $90,000, depleting the market capitalization of all cryptocurrencies by more than $230 billion.
With the cryptocurrency market still recovering from its biggest-ever attack last week, Ether and a number of well-known altcoins, such as Solana and Dogecoin, also continued to see selling pressure as investors turned their attention elsewhere.
During Asian trading hours on Tuesday, the second-largest cryptocurrency by market capitalization, after Bitcoin, has dropped more than 10 percent in the last two days, continuing its steep loss from earlier in the week. Over the same time frame, Dogecoin has decreased by roughly 13 percent, whereas Solana has decreased by nearly 15 percent.
According to the Bloomberg report Jeff Dorman, chief investment officer at Arca said
“Crypto is just weak and has been for eight weeks. Equities, fixed income, and gold have completely shrugged off any data points that have been used to explain weakness in crypto. Only crypto is going lower. And that’s largely due to poor sentiment, exploitation from various meme coin failures, and lack of capital to support new token launches,”
