Bitcoin price drops sharply due to concerns about Trump's tax order

Bitcoin exchanges and other cryptocurrencies fell in price as investors worried about US President Donald Trump's tax order.

The virtual currency market is tense due to the risk of a trade war between the US and other countries - Photo: REUTERS

Cryptocurrency prices slid on February 3 as investors grew increasingly concerned about a new trade war.

According to the newspaper South China Morning Post (SCMP), currency Bitcoin in Asian morning trading today is at around $96,606, down 4%, hitting its lowest level in the past three weeks.

Smaller cryptocurrencies like ether have fallen around 12%, returning to prices seen in early November 2024.

Investors believe that the signing of the decree tariffs on Mexico, Canada, and China US President Donald Trump's move on February 1 could harm business growth and increase risks to the investment environment. This concern has prompted investors to withdraw money from high-risk channels, including cryptocurrencies.

At the same time, cryptocurrencies are also under additional downward pressure after a strong rally from the November 2024 election.

This is because some investors feel frustrated that Mr. Trump has not made any immediate moves to promote cryptocurrencies or loosen regulations since he took office, according to SCMP .

“Cryptocurrencies are really the only way to represent risk over the weekend and with news like this, crypto will move to using a risk proxy,” said Chris Weston, research director at Australian-based financial brokerage Pepperstone.

Cryptocurrency exchanges turned red after China, Mexico and Canada responded to US President Donald Trump's tax decree.

Mexican President Claudia Sheinbaum and China's Ministry of Commerce both said they would take corresponding countermeasures in response.

Meanwhile, Canadian Prime Minister Justin Trudeau imposed a 25% tariff on 155 billion Canadian dollars ($106.5 billion) worth of US goods from February 4.

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