Crypto Chaos Erupts: Bitcoin Plummets Below $100K Amid Trump's Tariffs

Trump's Tariff Threat Sends Crypto Prices Tumbling

Cryptocurrency markets faced a significant downturn following U.S. President Donald Trump's announcement of new tariffs on goods from Canada, Mexico, and China. According to ABC News, Bitcoin's value dropped below $100,000, reaching a low of $92,000 on Sunday night before rebounding to $99,000 by Monday morning. Ethereum, Dogecoin, and other cryptocurrencies also experienced declines exceeding 10%. Trump's own meme coin saw a dramatic 75% drop from its all-time high, trading at $19. Analysts attribute the sell-off to fears of a trade war and its potential economic impact. Trump has promised to make the U.S. a global crypto hub, but his tariff policies have introduced volatility into the market.

Source: ABC News (https://abcnews.go.com/Technology/wireStory/trumps-tariff-threat-sends-crypto-prices-falling-118405200)

Bitcoin Recovers After Weekend Plunge

Bitcoin rebounded above $100,000 on Monday after a sharp drop to $91,000 over the weekend. Forbes reported that the recovery was driven by a combination of factors, including speculative bets being liquidated and a pause on tariffs for Mexican imports. Analysts highlighted the role of institutional investors and retail traders in stabilizing the market. Cory Klippsten, CEO of Swan Bitcoin, noted that the recovery was "no surprise" due to strong demand and Bitcoin's status as a hedge against economic uncertainty. Despite the rebound, market volatility remains high, with analysts predicting further fluctuations in the coming weeks.

Source: Forbes (https://www.forbes.com/sites/digital-assets/2025/02/03/bitcoin-recovers-above-100000-after-this-weekends-sharp-drop/)

Ethereum Faces Market Challenges Amid Tariff Concerns

Ethereum's price has been under pressure, with FXStreet reporting a drop to $91,231 on Monday. The decline wiped out January's gains as traders reacted to Trump's tariff announcements. The crypto market saw over $2.25 billion in liquidations within 24 hours, marking one of the largest single-day events in recent history. Analysts pointed to Bitcoin's strong correlation with U.S. equities and the broader market sell-off as contributing factors. Despite the downturn, some experts remain optimistic about Ethereum's long-term potential, citing its role in decentralized finance and blockchain innovation.

Source: FXStreet (https://www.fxstreet.com/cryptocurrencies/news/bitcoin-and-crypto-traders-lose-over-225-billion-in-liquidations-heres-why-202502031316)

AI-Powered Crypto: Opportunities and Risks

The integration of artificial intelligence (AI) with cryptocurrency is reshaping the digital economy, but not without challenges. Forbes explored the potential of AI-driven crypto tools to enhance efficiency and accessibility while raising concerns about market manipulation and systemic risks. Decentralized AI platforms like SingularityNET and Fetch.ai promise innovation but also highlight the need for regulatory oversight. Questions about data privacy, ethical AI, and the concentration of power remain unresolved. Policymakers and industry leaders face the challenge of balancing innovation with consumer protection.

Source: Forbes (https://www.forbes.com/sites/tonyaevans/2025/02/03/ai-powered-crypto-a-smart-bet-or-a-dangerous-gamble/)

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