Why did the encryption market decreased today, as the price of bitcoin decreased to less than 100 thousand dollars
Week weekend is very slow for merchants. Most Altcoins have been very bleed with losses ranging from 5 to more than 30 % in the past 24 hours.
Bitcoin price briefly fell to less than 100 thousand dollars, but found support on the mark of $ 99,000, which occurred several times in January as well. Based on the BTC chart, it seems that $ 99,000 is a strong support level, and as long as we stay above this threshold, we can look at the fully retreat as just a correction.
Trade war tensions hit markets
President Trump announced that he is planning To put 25 % tariffs on the goods from Canada and Mexico. Canada quickly responded and will impose a 25 % tariff on US goods worth $ 155 billion. Trump did not stop there – he also wanted to put a 60 % tariff on Chinese imports. China has already said it will take reprisal measures against these new definitions. The news does not sit well with the markets, because commercial wars generally mean bad news of economic growth and stability.
Canada responded to the American definitions. The best speech of Justin Trudeau.
Canada will put a 25 % tariff at $ 155 billion in US imports in response to the Trump tariff. This is in addition to a boycott at the country level on all American products throughout Canada. #cdnpoli #Tariffwar pic.twitter.com/vjavxmo6nh
Anonymous (Youranoncentral) February 2, 2025
The new tariff ads have made investors tense. When the markets face uncertainty like this, people often move from the most dangerous investments. Current currencies also feel this pressure, just like other high -risk assets. The encryption market was especially sensitive to the total events, and this situation in the trade war is not an exception.
These commercial tensions can lead to more problems. The customs tariff may push inflation up, as imported goods become more expensive. If this happens, central banks may raise interest rates to control inflation. When interest rates rise, investors usually prefer the safer investments on encrypted currencies. Top prices also mean better returns on traditional investments such as bonds, which can pull money away from the encryption market. This can maintain pressure on encryption prices for a while.
The market is likely to continue to see how these commercial tensions develop. Any escalation signs can bring more selling pressure, while decision signs may help prices to recover. Currently, traders need to consider the level of bitcoin of $ 99,000. If we fall less, there are more causes of panic and we can see more sales.
Also read: Can XCN reach $ 1 in 2025? Onyxcoin prediction
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