As reported by Reuters, Bitcoin tumbled below $100,000 on Monday (Singapore time), reaching a three-week low of around $96,606, as escalating trade tensions triggered a flight from risk assets. The slump in the leading cryptocurrency coincided with significant drops in other digital currencies, with Ether falling by approximately 12% to levels last seen in early November.
The downturn follows the imposition of tariffs by the U.S. on goods from Mexico, Canada, and China. The new levies, set to take effect on Tuesday, have heightened concerns about a potential global trade war, prompting investors to seek safer havens.
Unlike traditional markets, cryptocurrency exchanges operate 24/7, making them particularly susceptible to weekend news and shifts in market sentiment. The recent sell-off reflects investors’ anxieties about the potential negative impact of tariffs on global economic growth and corporate profits.
“Crypto is really the only way to express risk over the weekend, and on news like this crypto resorts to a risk proxy,” noted Chris Weston, head of research at Pepperstone.
The cryptocurrency market also faces additional pressure after a substantial rally following the 2024 U.S. presidential election. Some investors have expressed disappointment over the perceived lack of progress in implementing policies specifically aimed at bolstering the crypto sector or relaxing existing regulations. Sources and related content
