Investing.com-- Bitcoin fell sharply on Monday, highlighting a broader decline across cryptocurrency prices as risk appetite was battered by U.S. President Donald Trump imposing trade tariffs on China, Canada, and Mexico.
Losses in crypto followed an over 1.5% slump in Wall Street futures, as traders positioned for a renewed trade war after Trump imposed 25% import duties on Canada and Mexico, and a 10% tariff on China.
All three countries vowed retaliation, further undermining risk appetite.
Bitcoin slid as much as 10% to $91,695.8, while world no.2 crypto Ether slumped 22.7% to $2,434.84.
$TRUMP- a memecoin launched by the President in January- slid over 15% to a record low of $16.349.
Trump’s tariffs largely offset the prospect of friendlier crypto regulations under the 47th President. His recent executive order calling for a crypto regulatory framework also sparked little enthusiasm within markets.
Trump’s trade tariffs sparked a broad risk-off move across global financial markets, while pushing the dollar to a near one-month peak.
Safe havens such as gold also saw some bids, although the dollar remained the main target of most buying.
Analysts warned that Trump’s tariffs could drive up inflation and dent U.S. economic growth, while also lessening the prospect of interest rate cuts by the Federal Reserve.