Cryptocurrency prices dropped on Monday, with Bitcoin falling to its lowest level in three weeks due to growing fears of a trade war.
Bitcoin, the most popular cryptocurrency, fell to $91,441.89 before recovering slightly to $95,730.35, showing a 6.2% decline. Ether, the second-largest cryptocurrency, experienced even bigger losses, dropping nearly 25% since Friday. This is its worst three-day drop since November 2022, and its current price stands at $2,592.14.
The market downturn happened after U.S. President Donald Trump announced new tariffs. The U.S. will impose a 25% tax on imports from Mexico and Canada and a 10% tax on Chinese goods starting Tuesday.
These new trade policies have made investors nervous, leading to uncertainty in financial markets. In response, Canada, Mexico, and China have announced their own measures, increasing concerns about a potential global trade conflict.
Cryptocurrency markets are known for their volatility, but external factors like trade policies and global economic tensions can have a strong impact on prices. Investors are closely watching the situation to see how these new tariffs will affect the broader financial markets and the future of digital currencies.
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