Trump’s Tariff Move Shakes Bitcoin Rally for Second Day in a Row - Coinedict

February 1, 2025 – Bitcoin’s bullish momentum hit another roadblock after President Donald Trump reaffirmed his plan to impose new tariffs, triggering a second consecutive day of market turbulence.

Bitcoin’s Rally Stalled by Tariff Uncertainty

The crypto market had been riding a wave of optimism, with Bitcoin surging past $106,000 on expectations that the U.S. might delay the tariff hike. However, the White House swiftly refuted reports of a postponement, sending Bitcoin tumbling back below $103,000—a 2.3% decline over the past 24 hours.

The tariff concerns first rattled markets on Thursday, when Trump announced that 25% tariffs on imports from Mexico and Canada would take effect on February 1, alongside a 10% tariff on Chinese goods. This news led to an immediate pullback, reversing Bitcoin’s attempt to breach new highs above $109,000.

Markets React as White House Confirms Tariffs Will Proceed

On Friday, traders found hope in a Reuters report suggesting the tariffs might be delayed until March 1, allowing time for countries to negotiate exemptions. However, White House Press Secretary Karoline Leavitt dismissed the report as false, confirming that the tariffs will go into effect as planned.

Following the confirmation, Bitcoin dropped 2%, mirroring its reaction from the previous day. The broader CoinDesk 20 Index also saw losses, down 1.3%, though Ethereum (ETH) held up better with a 1.2% gain.

Traditional Markets Also Take a Hit

While U.S. stock markets remained in positive territory, they too lost momentum, giving up much of their earlier gains. Investors are now assessing the potential impact of Trump’s tariff policy on global trade, inflation, and market stability.

What’s Next for Bitcoin?

With ongoing macroeconomic uncertainty, Bitcoin’s ability to reclaim its bullish momentum may hinge on how traders react to the tariffs in the coming days. A break above $106,000 could reignite a push toward new all-time highs, while continued downside pressure could see BTC test support near $100,000.

For now, all eyes are on how the market digests the latest political developments—and whether Bitcoin can regain its strength despite external economic pressures.