The post 3 reasons why Bitcoin sells off on Trump tariff news appeared on BitcoinEthereumNews.com.

Bitcoin (BTC) has declined by more than 15% since Feb. 3—when US President Donald Trump threatened to impose tariffs on China, Mexico, and Canada—and was trading for as low as around $86,400 as of March 5. BTC/USD daily price chart. Source: TradingView Simultaneously, investors have withdrawn over $3.50 billion in assets from US-based Spot Bitcoin exchange-traded funds (ETF) since Feb. 3, according to Farside Investors data. Let’s examine why news of Trump’s tariffs is leading to selloffs in the Bitcoin market. Economic uncertainty sours risk-on appetite The US imposed 25% tariffs on Canada and Mexico and 10% on China on March 4, raising concerns over supply chain disruptions and rising prices, fueling fears of a “Trumpcession.” Risk assets typically sell off in such scenarios—in August 2019, Trump’s trade war with China triggered an 800-point Dow Jones drop, but Bitcoin surged as Chinese traders used it to bypass capital controls. Related: Bitcoin price metric that called 2020 bull run says $69K new bottom The Chinese government took notice of these trends and increased crackdowns on Bitcoin trading and OTC platforms in late 2019 and 2020. This time, however, Bitcoin is behaving like a risk asset, with its 30-week correlation with the Nasdaq hitting 0.91. BTC/USD vs. Nasdaq Composite 30-week correlation coefficient. Source: TradingView Additionally, JPMorgan has turned “tactically bearish” toward US equities during the trade war, which may hurt Bitcoin if the correlation sustains. Bitcoin trades 24/7 Unlike traditional markets that close on weekends, BTC trades 24/7 and reacts instantly to macroeconomic developments. When Trump’s tariff plans were confirmed over a weekend in early February, crypto traders moved quickly, selling off Bitcoin and other assets before stock markets could react. This led to a sharp drop on Feb. 3, pushing Bitcoin to a three-week low of $91,000, while the broader crypto…

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Filed under: News - @ March 6, 2025 3:26 am