The cryptocurrency market experienced a sense of déjà vu as a hopeful report regarding a potential tariff delay was swiftly refuted by the White House. This news triggered a downturn in Bitcoin’s price, mirroring a similar reaction observed just a day prior.
On Thursday, President Trump announced the imposition of 25% tariffs on goods from Mexico and Canada, effective Saturday, February 1st. This announcement came on the heels of a significant Bitcoin rally that had pushed the price above $106,000. Following the news, Bitcoin’s price quickly retreated by approximately 2%, settling around the $104,000 mark. While U.S. stocks also experienced a pullback from earlier gains, they managed to close the session in positive territory.
A Reuters report on Friday offered a glimmer of hope, suggesting that the tariffs might be postponed until March 1st. The report indicated that a process was being established to allow countries to apply for exemptions on specific exports. This briefly buoyed market sentiment.
However, the White House promptly dismissed the Reuters report as “false.” Press Secretary Karoline Leavitt confirmed that the tariffs, including a 10% levy on goods from China, would indeed take effect as initially announced.
Bitcoin, which had once again surpassed the $106,000 threshold and appeared poised to challenge its all-time high of over $109,000, reacted negatively to the confirmation. The cryptocurrency’s price tumbled to just below $103,000 at the time of this report, representing a 2.3% decline over the preceding 24 hours.
The broader CoinDesk 20 Index, tracking the performance of the top 20 cryptocurrencies, experienced a 1.3% decline during the same period. However, this index fared relatively better than Bitcoin, primarily due to Ether’s (ETH) 1.2% price increase.
Traditional markets, while still showing modest gains, also retreated from their session highs following the White House’s confirmation. This suggests a broader market sensitivity to the impending tariffs and their potential economic impact.
In conclusion, the White House’s confirmation of the imminent tariffs has triggered a decline in Bitcoin’s price and introduced uncertainty into the cryptocurrency and traditional markets. The situation underscores the interconnectedness of global markets and the sensitivity of asset prices to geopolitical developments. Investors should closely monitor developments related to the tariffs and their potential impact on various asset classes.
