Bitcoin Plunges Below $95,000 as Trump’s Trade War Tariffs Rattle Crypto Markets

Bitcoin Drops to $91,000 Amid Trade Tensions and Powell's Crypto Banking Stance

  • Federal Reserve Chair Jerome Powell signals openness to banks serving crypto customers, marking a shift from previous restrictions.
  • Bitcoin Price declined to $91,000 after reaching nearly $110,000, with the broader crypto market losing $300 billion in value.
  • Donald Trump‘s new tariff policies on Canada, Mexico, and China have triggered market uncertainty affecting crypto prices.
  • Wall Street’s cryptocurrency adoption continues to grow, led by BlackRock‘s spot Bitcoin ETF initiatives.
  • Market analysts predict potential further volatility as global trade tensions escalate.

The cryptocurrency market experienced significant turbulence as bitcoin retreated from its all-time high near $110,000, dropping to $95,000 amid escalating global trade tensions. The decline coincides with Donald Trump’s announcement of new tariffs on international trade partners and Federal Reserve Chair Jerome Powell’s landmark statements on cryptocurrency banking services.

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Powell opened new doors for institutional crypto adoption, stating that “Banks are perfectly able to serve crypto customers as long as they can understand and service the risks.” This represents a significant departure from the previous administration’s restrictive “Operation Choke Point 2.0” policies, which effectively limited cryptocurrency companies’ access to banking services.

The market impact was immediate and severe, with the total cryptocurrency market capitalization dropping by approximately $300 billion. Alternative cryptocurrencies (altcoins) faced steeper declines, with Ethereum falling 20% before showing signs of recovery. Solana, positioned as Ethereum’s primary competitor, demonstrated relative resilience with only a 6% decrease.

Petr Kozyakov, chief executive of crypto payment platform Mercuryo, attributes the market reaction to widespread uncertainty: “A tidal wave of fear, uncertainty and doubt (FUD) has been unleashed across the cryptocurrency market after U.S. president Donald Trump’s Friday tariff announcement.”

The new tariff structure, scheduled for implementation on Tuesday, includes:
– 25% tariffs on imports from Canada and Mexico
– 10% tariff on Canadian energy and oil
– Additional 10% tariff on Chinese imports

Investment expert Robert Kiyosaki views the market downturn as an opportunity, suggesting that while assets might crash, it presents buying opportunities for strategic investors. His perspective emphasizes the underlying concern about growing debt levels rather than temporary price fluctuations.

Bitwise’s investment analyst Jeff Park offers a contrarian view, suggesting that trade tensions might actually benefit bitcoin’s position as a hedge against traditional market instability. “While both sides of the trade imbalance equation will want bitcoin for two different reasons, the end result is the same: higher, violently faster—for we are at war,” Park explains.

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This market adjustment occurs against the backdrop of increasing institutional adoption, with BlackRock and other Wall Street giants continuing their push into cryptocurrency through spot bitcoin ETF offerings, suggesting a longer-term trend toward mainstream acceptance despite short-term volatility.

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