A new Trump tariff stoke inflation fears, leads to $ 2 billion in encryption, and Bitcoin fell to $ 92,000

The encryption market qualifiers have risen to two billion dollars, as Bitcoin fell to its lowest level since early January, after President Trump announced the new definitions that sparked inflation concerns, according to Coinglass Data.

Trump on Saturday Declare Plan to impose a 25 % tariff on imports from Canada and Mexico, along with a 10 % tariff on Chinese goods. The measures, targeting the three largest commercial partners in America, enter Tuesday.

The President frame the definitions as part of a broader strategy to address border security and combat the Open -up crisis, especially trafficking in fentanel.

Economists warn that Trump’s new tariffs may increase consumer costs with companies pass by additional expenses.

While the White House maintains these measures will enhance American manufacturing, experts warn of poor inflation and may lead to a commercial conflict that affects all the countries concerned, which leads to loss of jobs and disrupting the supply chain.

The announcement of these definitions sparked fluctuations in the encryption market, as investors’ reaction to fears of inflation pressure.

Bitcoin fell to less than 100,000 dollars on Saturday and continued to decrease to $ 92,000, while ETHEREUM decreased by 24 % to $ 2300, according to Coingecko Data.

The market turmoil led to 1.7 billion dollars in long 24 hours, as ETHEREM merchants suffer from $ 528 million from Bitcoin losses and traders facing $ 421 million in liquidation.

The total market value of the encryption decreased by about 8 %, with most encryption assets recorded two numbers within one day. XRP and DOGE decreased by 30 %, and ADA decreased by 35 %, while both Sol and BNB 15 % decreased.

Trump’s tariff will send bitcoin to the highest and faster

Analysts believe that the new Trump tariff can lead to an increased demand for bitcoin as a hedge against inflation. However, a lot of caution that the continuous market fluctuations may continue to pressure their prices in the short term.

According to Jeff Park, head of Alpha Strategies at Management BitWise Asset, Trump’s tariff policies can unintentionally calm down Bitcoin.

This is the only thing that you need to read about the customs tariff for Bitcoin’s understanding of 2025. This is undoubtedly the highest micro trading this year: Plaza Accord 2.0 is coming.

Put a reference signal on this and reconsider the time when the financial war is revealed by sending Bitcoin to the top violently. pic.twitter.com/wxmb36yv8o

Jeff Park (@dgt10011) February 2, 2025

Park suggests that implementing new definitions can weaken the dollar and create favorable conditions for the growth of Bitcoin. This comes at a time when the United States is struggling with the Trifin dilemma, as it requires its role as a global backup currency to maintain the trade deficit to provide liquidity around the world.

Customs tariffs are seen as a strategic step to temporarily weaken the dollar, which may lead to a multilateral agreement similar to “Plaza Accord 2.0”, which can reduce the domination of the dollar and encourage countries to diversify their reserves beyond US Treasury.

The analyst notes that the combination of the prices of the weaker dollar and the United States can create favorable conditions for Bitcoin’s adoption. Since definitions pushing inflation up, affecting both local consumers and international commercial partners, foreign countries may face the spread of the currency, which may lead their citizens towards Bitcoin as an alternative store to value.

Park said that both sides of the commercial imbalance will resort to Bitcoin, which prompted “violently higher”.