Bitcoin Slides 8% to $93K as Trump’s Trade War Worries Hit Asia.

Bitcoin (BTC), the largest cryptocurrency by market cap, started the trading week in Asia with a noticeable decline, dropping by over 8%. The drop coincides with growing concerns about the potential global economic fallout from a renewed trade war.

The renewed tensions came after Canadian Prime Minister Justin Trudeau announced that Canada would impose 25% tariffs on various U.S. goods, including drinks and household appliances. This came in retaliation for President Donald Trump’s recent tariff increases: 25% on Canadian and Mexican imports, as well as 10% on Chinese goods. In response, China vowed to take action at the World Trade Organization and hinted at further countermeasures to protect its economic interests.

The uncertainty surrounding the global economy, amplified by these trade disputes, is contributing to fears of higher inflation, which may make the Federal Reserve hesitant to make aggressive interest rate cuts. Bitcoin’s price slump appears to reflect this heightened risk sentiment. The broader cryptocurrency market also experienced a downturn, with the CoinDesk 20 Index dropping by over 2%, further indicating the risk-off mood affecting both traditional and digital markets alike.