Bitcoin Drops 15% Amid Trump’s Tariff Announcement!!!!!!!

Bitcoin has dropped over 15% since February 3, when President Donald Trump announced tariffs on China, Canada, and Mexico. As of March 5, Bitcoin was trading around $86,400. In response to this announcement, investors have pulled out over $3.5 billion from Bitcoin exchange-traded funds (ETFs) in the U.S.

Trump's tariffs have led to economic uncertainty, which typically causes risk assets like Bitcoin to sell off. In previous trade disputes, such as the U.S.-China trade war, Bitcoin's price actually rose as Chinese traders used it to bypass capital controls. However, this time, Bitcoin is behaving more like a risk asset, contributing to the decline.

Additionally, Bitcoin's 24/7 trading means that it reacts quickly to market news, unlike traditional markets that close on weekends. When Trump's tariff plans were confirmed, crypto traders quickly sold off Bitcoin over the weekend, even before stock markets responded.