Bitcoin Falls Close to $94K as Market Reacts to Trump’s Trade War in Asia

As Asia’s trading day began, a broad sell-off hit major cryptocurrencies, including Bitcoin (BTC), Ether (ETH), Solana (SOL), and XRP, as markets processed the implications of a global trade war. By mid-morning Hong Kong time, Bitcoin had dropped 8%, falling to just above $93,100, according to CoinDesk Indices data.

Later in the afternoon, BTC showed signs of stabilization, holding steady at around $93.9K. Meanwhile, Ether was down nearly 20%, dipping below $2,500, and Solana saw a 7% drop, trading at $193. XRP was the hardest hit, falling 23% to $2.

The broader CoinDesk 20 Index, which tracks the largest cryptocurrencies, lost nearly 17% of its value. Trump’s memecoin (TRUMP) also fell 12%. World Liberty Financial (WLFI), the cryptocurrency project backed by Trump’s family, reported a 20% loss in its January investments, according to SpotOnChain data.

The steep decline in digital assets followed the announcement by President Donald Trump of 25% tariffs on goods from Mexico and Canada. Many market observers expressed skepticism about the effectiveness of the tariffs, with a Wall Street Journal editorial calling the trade dispute the “Dumbest Trade War in History.”

The European Union responded to the news by pledging to take strong action against any tariffs imposed on its member states, with Politico citing a spokesperson who warned that tariffs would create unnecessary economic disruption and drive inflation.

In contrast, the U.K. appeared to avoid the tariffs, with Trump stating that an agreement could be reached, according to BBC reports. On Truth Social, Trump dismissed his critics, claiming that those opposing the tariffs were being funded by China.