Bitcoin drops, ether slammed after Trump's tariffs cause global risk-off move
Cryptocurrencies tumbled on Sunday in a risk-off move after President Donald Trump hit Canada, Mexico and China with long-threatened import tariffs.
Cryptocurrencies tumbled in a risk-off move after President Donald Trump hit Canada, Mexico and China with long-threatened import tariffs.
The price of bitcoin fell 3% Monday to $94,457.88, down from a price above $102,000 before the weekend, according to Coin Metrics. The U.S. dollar index, which has an inverse relationship with bitcoin, was up nearly 1%.
Shares of Coinbase and MicroStrategy lost 6% and 7%, respectively, in premarket trading.
The slide in cryptocurrencies began Saturday evening after Trump signed an order imposing 25% tariffs on imports from Mexico and Canada, as well as a 10% duty on China. It accelerated Sunday night. The U.S. does about $1.6 trillion in business with the three countries.
"Bulls are de-leveraging massively at the moment as everyone watches closely to see if we get negotiation or a trade war," James Davies, CEO and co-founder at trading platform Crypto Valley Exchange. "But, $110,000 and $120,000 are still the largest call open interest points, so really volatility is the biggest bet being made."