As of February 3, 2025, Bitcoin (BTC) is trading at approximately $94,151, reflecting a 5.26% decline from the previous close, with a trading range between $91,279 and $100,461.

Ethereum (ETH) has experienced a sharper drop, currently priced around $2,537.16, down 17.78%, fluctuating between $2,147.05 and $3,131.63.

This significant downturn in the crypto market is largely driven by escalating concerns over a potential global trade war following President Donald Trump’s announcement on February 1 of new tariffs—25% on imports from Mexico and Canada and 10% on goods from China—set to take effect on February 4.

Retaliatory measures promised by Canada, Mexico, and China have further heightened investor anxiety, prompting a shift away from riskier assets, including cryptocurrencies.

While Bitcoin has historically been viewed as a hedge against traditional market volatility, its recent performance highlights growing sensitivity to global economic events.

The current reaction underscores how geopolitical tensions and policy decisions are increasingly shaping cryptocurrency market dynamics.

As these developments continue to unfold, investors should remain vigilant, as ongoing geopolitical and macroeconomic shifts are likely to influence crypto valuations in the near term.

Ryan Lee, Chief Analyst at Bitget Research