Cryptocurrency prices plunged as global trade tensions rattled investors, prompting them to flee risky assets. Bitcoin slid over 4% early Monday in Asia, hitting a three-week low near $96,606, while Ethereum tumbled 12%, reaching levels last seen in early November.
The selloff followed U.S. President Donald Trump's decision to impose 25% tariffs on imports from Mexico and Canada and 10% on Chinese goods, set to take effect Tuesday. Cryptocurrencies, which trade 24/7, reacted sharply as investors grew wary of economic uncertainty.
Markets fear tariffs could weaken global growth and corporate earnings, triggering a broader shift away from risk assets. “Crypto is the only market open on weekends, making it a go-to risk proxy,” said Chris Weston, head of research at Pepperstone.
Additionally, downward pressure on digital assets comes after a post-election rally fueled by optimism over Trump’s potential crypto-friendly policies. However, the lack of immediate regulatory reforms has left some investors disappointed.
As uncertainty looms, crypto markets remain highly volatile, mirroring broader investor sentiment amid global trade concerns.
