Market Volatility Continues Amid Trade War Uncertainty
Bitcoin reversed earlier losses on Monday, surging back toward the $100,000 mark after the U.S. announced a one-month delay on tariffs targeting Mexican imports. The move provided some relief to markets, which had been rattled by President Donald Trump’s sweeping import tariffs imposed over the weekend.
The world’s largest cryptocurrency traded at $98,461.83, up less than 1% on the day, according to Coin Metrics. Earlier, it had dipped as low as $91,212.63 in response to the tariff announcement but remained resilient compared to other risk assets. Bitcoin had previously topped $102,000 on Friday before the latest market turbulence.
Bitcoin Holds Firm as Risk Assets Struggle
Shares of crypto-related companies like Coinbase and MicroStrategy pared losses after the tariff pause, down 1% and 0.5%, respectively.
“Bitcoin holding up better than the rest of the market reinforces its position as the safest bet in crypto,” said Ben Kurland, CEO of crypto research platform DYOR. “When panic sets in, liquidity flows to bitcoin over riskier assets, proving once again that it’s the industry’s reserve asset.”
Over the weekend, cryptocurrencies tumbled after Trump signed an order imposing 25% tariffs on imports from Mexico and Canada, as well as a 10% duty on China. The U.S. conducts approximately $1.6 trillion in trade with the three countries, making the tariffs a significant market disruptor.
Crypto Liquidations Surge Amid Market Uncertainty
Bitcoin saw $377.6 million in long liquidations in the past 24 hours, according to CoinGlass. Ether (ETH) faced even steeper losses, with $479 million in liquidations.
Other major cryptocurrencies also suffered declines before bouncing off session lows:
🔹 Ether (ETH) fell 7% to $2,711.05, after trading above $3,300 on Friday.
🔹 The CoinDesk 20 Index, which tracks the broader crypto market, dropped more than 1%.
🔹 Meme coins saw some of the biggest losses in the downturn.
Trade War Could Boost Bitcoin in the Long Run
Despite short-term volatility, some analysts believe a prolonged trade war could ultimately strengthen Bitcoin by weakening the U.S. dollar and interest rates.
“A sustained tariff war would be amazing for Bitcoin in the long run, as it would contribute to dollar devaluation and lower U.S. rates,” said Jeff Park, head of alpha strategies at Bitwise Asset Management.
For now, however, Bitcoin continues to behave like a risk asset, meaning it could face further downside pressure as economic uncertainty persists.
Key Levels to Watch: Will Bitcoin Hold $90,000?
Analysts are closely monitoring $90,000 as a critical support level for Bitcoin. A meaningful break below this level could lead to a deeper correction toward $80,000.
“Digital assets will eventually benefit from today’s Treasury yield mix, but for now, we could see a choppy few days,” Geoff Kendrick, an analyst at Standard Chartered, wrote in a note Monday. “Until broader economic fears ease, Bitcoin remains at risk of testing the $90,000 level again.”
With market uncertainty at elevated levels, Bitcoin’s path forward remains uncertain—but its resilience in the face of recent turmoil continues to highlight its role as a key asset in global finance. 🚀
