Bitcoin has plunged to $93,000 after US President Donald Trump announced tariffs on goods from China, Canada and Mexico. The tariffs could increase inflation, push interest rates higher and send the US dollar index (DXY) soaring.
Ryan Lee, chief analyst at Bitget Research, predicts Bitcoin will correct to $90,000. Some experts warn that the recent decline could be a market trap. Popular analyst Aksel Kibar said that panic predictions and fears of a crash after just a 1% correction are not signs that the market has topped out.
Trump’s aggressive tariff hikes on three of his largest trading partners could become the biggest macroeconomic risk in 2025, according to analyst Wu Blockchain. In a recent editorial, Wu Blockchain said that while it may seem difficult to implement at first, the decision to raise tariffs on goods from Canada, Mexico, and China has put all four countries at a disadvantage.
According to many major news agencies, the Trump administration raised tariffs on goods from Canada and Mexico to 25%, while Chinese goods were subject to a 10% increase. Washington argued that the move was necessary to pressure the three countries to take stronger measures to stop illegal flows into the United States.
Read more: The “Made in USA” Category Transforms as Trump Exempts XRP from Taxes
However, the move has sparked an escalating trade war as Canada, China, and Mexico have all announced retaliatory measures by imposing tariffs on US goods. While Trump’s tariffs are expected to significantly hurt the economies of the three countries, many experts warn that American consumers will also be negatively affected. Higher prices could make goods and services more scarce, reducing the purchasing power of American businesses and people.
