Bitcoin (BTC<\/a>) has dropped below $100,000 for the first time in six days following US President Donald Trump signing an executive order to impose import tariffs on goods from China, Canada, and Mexico. <\/p>\n The imposed tariffs have already triggered retaliation from the three countries, and the crypto industry is divided on how this will affect the broader market.<\/p>\n According to a Feb. 1 statement<\/a> from the White House, \u201cTrump is implementing a 25% additional tariff on imports from Canada and Mexico and a 10% additional tariff on imports from China.\u00a0 Energy resources from Canada will have a lower 10% tariff.\u201d<\/p>\n Source: <\/em>Donald J. Trump<\/em><\/a><\/p>\n<\/figcaption><\/figure>\n The statement said that \u201cTrump is taking bold action to hold Mexico, Canada, and China accountable to their promises of halting illegal immigration and stopping poisonous fentanyl and other drugs from flowing into our country.\u201d <\/p>\n Tariffs could raise inflation, potentially leading to higher interest rates<\/a>, which typically causes investors to move away from riskier assets like crypto and toward more traditional assets like bonds and term deposits.<\/p>\n Shortly after Trump\u2019s announcement, Canada\u2019s Prime Minister Justin Trudeau announced<\/a> in a press conference that he would be imposing a 25% tariff on $106.5 billion worth of US goods. <\/p>\n China\u2019s Ministry of Commerce reportedly said<\/a> it would file a complaint with the World Trade Organization (WTO) and \u201ctake corresponding countermeasures.\u201d<\/p>\n Mexican President Claudia Sheinbaum said in a lengthy X post<\/a> that she has instructed the Secretary of Economy to \u201cimplement plan B\u201d which includes \u201ctariff and non-tariff measures in defense of Mexico\u2019s interests.\u201d<\/p>\n Following the retaliations<\/a>, Bitcoin slipped below the psychological $100,000 price level for the first time since Jan. 27, falling to $99,111. At the time of publication, it is trading at $99,540, according<\/a> to CoinMarketCap.<\/p>\n Bitcoin is trading at $99,540 at the time of publication. Source: <\/em>CoinMarketCap<\/em><\/a><\/p>\n<\/figcaption><\/figure>\n According to CoinGlass data<\/a>, around $22.70 million in long positions were liquidated in the four hours leading up to publication. <\/p>\n The crypto industry is divided on how much the imposed tariffs will impact the broader crypto market.<\/a><\/p>\n Crypto Capital Venture founder Dan Gambardello isn\u2019t buying into the narrative.<\/p>\n Gambardello said<\/a>, \u201cI cannot believe there\u2019s a popular opinion floating around that Trump tariffs and his memecoins ended the bull cycle.\u201d<\/p>\n Related: <\/strong><\/em>Trump\u2019s CBDC ban to boost crypto adoption, Musk\u2019s dad plans $200M memecoin raise: Finance Redefined<\/strong><\/em><\/a><\/p>\n \u201cBlackRock is continuing to accumulate ETH and BTC while retail frantically panics because crypto is currently consolidating,\u201d Gambardello said.<\/p>\n While Bitwise Invest head of alpha strategies Jeff Park said<\/a>, \u201cHow amazing a sustained tariff war is going to be for Bitcoin in the long run,\u201d not all crypto commentators agreed.<\/p>\n One opponent, Cinnaeamhain Ventures partner Adam Cochran, said<\/a>, \u201cBitcoin is not separated enough from the global markets and trades like triple-levered tech these days.\u201d<\/p>\n \u201cAn economic squeeze of this scale just means pain all around, and we should be ok with denouncing that,\u201d Cochran said.<\/p>\n Magazine: <\/strong><\/em>XRP to $4 next? SBF\u2019s parents seek Trump pardon, and more: Hodler\u2019s Digest, Jan. 26 \u2013 Feb. 1<\/strong><\/em><\/a><\/p>\nBitcoins The three countries were quick to retaliate<\/h2>\n
Bitcoins Crypto industry split on how tariffs will impact market<\/h2>\n