Bitcoin Crashes as Trump Imposes High Trade Tariffs: Possible Scenarios for BTC

Bitcoin has lost more than 7% this weekend, crashing below $100,000 and sparked fears that the cryptocurrency market may plummet deeper soon. The massive price drop came as a result of a major development initiated by US president Trump – the imposing of tremendous 25% tariffs on goods imported from Canada and Mexico, escalating trade tensions between the US and its two largest trading partners.

A response came quickly from both countries as they also lifted the tariffs on American goods, increasing the tension and uncertainty in financial markets further. Investors reacted quickly by selling various risk-on assets, including cryptocurrencies. Bitcoin has faced a decline of rough;y 8%. Altcoins followed suit.

Bitcoin Сrashes Below $100,000, Altcoins Follow

The world’s largest digital currency Bitcoin held firmly above the $100,000 mark for several weeks and even was testing $107,000. However, on Friday it faced a rapid sell-off, plunging from above $106,000 to the $101,500 zone. Over the weekend, BTC went down from $102,200 to $98,160 and then staged a small recovery to $98,600.

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That was one of the biggest Bitcoin drops within a single day during the recent months and it raised concerns that further instability may hit global trade relations between the US and its closest neighbours. Canada refused Trump’s proposal to turn into the 51st US state. As for Mexico, Trump ordered tariffs on this country due to the massive inflow of illegal immigrants and the influx of drugs from this country into the US. Those were the reasons for the drastically increased tariffs.

Now, traders are carefully watching whether Bitcoin will be able to recover its positions above $100,000 or if the continued economic uncertainty will cause further sell-offs and will push the price further down.

Following the downgrading Bitcoin price trajectory, major altcoins went down. Ethereum, Solana, Cardano went down by more than 6-8%. Dogecoin, the meme cryptocurrency favored by Elon Musk, tanked more than 11% during the past 24 hours. Analysts believe that the economic uncertainty triggered by the new tariffs could be driving investors away from riskier assets, including cryptocurrencies, and are pushing them towards safer ones, such as gold and US Treasuries.

Trump Family’s Meme Coins Crash

However, among cryptocurrency assets that took the hardest price hits in the crypto space were the meme coins launched by Donald Trump and his wife Melania – TRUMP and MELANIA. These coins were launched in late January 2025 and quickly gained engagement within the cryptocurrency community and their prices rapidly rose. 

Trump’s self-branded meme coin, which had been touted as a symbol of financial independence” crashed by roughly 24% over the past two days. The same happened to MELANIA launched shortly after TRUMP. MELANIA succeeded in building a sizable community around it and then suffered a painful decline.

 The price crash of Trump-branded cryptos raises a wave of questions regarding the sustainability of meme coins, particularly of PolitiFi ones, which are tied to political figures. At the start, those coins prospered on media attention and the hype that social media spread about them. But now they are struggling to keep investor confidence in the current bearish market. It is likely that the political controversy which surrounds Trump’s economic policies has played its role here since some investors fear that his aggressive actions towards neighbouring countries could worsen the current economic and financial instability.

Bitcoin May Crash Further Down

Some market experts have expressed concerns that Bitcoin’s recent price drop could be much more than a short-term correction and could extend into a prolonged decline. Analysts are warning that should economic tensions keep escalating thanks to Trump’s policies Bitcoin could crash further down and reach $95,000 and go even further. According to analysts, a break below $95,000 could provoke BTC crashing towards $90,000 or make it collapse lower.

Their opponents insist that currently the market is going through a temporary correction, reacting to market uncertainty and that crypto will begin to revive once investors come to senses and start searching for alternatives stores of value apart from traditional gold.

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One of the most powerful factors to influence Bitcoin price movements in the coming weeks and months will be how the US, Canada, and Mexico will deal with the escalating trade war. If the situation worsens and the sides take to more aggressive measures, additional pressure is likely to be put on financial markets, as well as cryptocurrency ones. 

However, if negotiations take place and a solution is found, (or if banks provide economic stimulus), Bitcoin could show a strong rebound from the current lows. In any case, the cryptocurrency markets remain highly unpredictable and investors are carefully watching as new developments on the global economic and political arenas continue to unfold.