Cryptocurrency slides as Trump’s trade war rattles markets

Cryptocurrency prices took a dive on Monday, with Bitcoin hitting a three-week low and Ether dropping to its lowest point since early September.

Cryptocurrency prices took a dive on Monday, with Bitcoin hitting a three-week low and Ether dropping to its lowest point since early September.

The global trade war looming in the background spooked investors, pushing them out of risky assets and sending the crypto market into a downturn.

Bitcoin fell to $US94,476.18 ($A154,073.77) on Monday morning in Asia, dipping as low as $91,441.89 ($A149,837.58).

Meanwhile, Ether dropped by 24 per cent, returning to levels not seen since early September.

It last traded at $2,494.33 ($A4,091.23).

While it hasn’t been branded as the crypto doomsday worth panicking over – some investors are actually excited at an opportunity to cash in on cheap assets – the downturn this week has come as a reality check.

Polarising finance commentator Robert Kiyosaki went so far as saying the tumble would coincide with millions of job losses and told his 2.7 million followers this was “the best time to get rich”.

“BRUTAL CRASH HERE NOW. The stock, bond, real estate, gold, silver, and Bitcoin markets are crashing,” he wrote on X.

“The best assets in the world are going on sale. Millions will lose their jobs. This is the best time to get rich.”

Bitcoin fell to USD $94,476.18 on Monday morning in Asia, dipping as low as $$149,837.58.

The supposed sell-off coincided with US President Donald Trump’s announcement over the weekend that he would impose hefty tariffs on trade partners: 25 per cent on Mexican and most Canadian imports, and 10 per cent on goods from China, starting Tuesday.

Both Canada and Mexico immediately vowed to retaliate, while China warned it would challenge the tariffs at the World Trade Organisation.

Cryptocurrencies have recently shown a sensitivity to broader market sentiment, which is often interpreted as investor anxiety.

“The impacts of Trump’s tariffs are equally being felt in crypto markets, with over $2 billion wiped out in liquidations in the past 24 hours,“ Caroline Bowler, CEO of Australia-based crypto exchange BTC Markets, told news.com.au.

“Biggest moves have been from alt-coins such as Cardano (-25 per cent), XRP (-22 per cent) and even Ethereum (-18 per cent) posting big reductions as we enter February.

“The markets have seen this type of movement before, but it is certainly a test of just how closely does the US crypto community align with Trump’s economic policies.”

But the market’s struggles aren’t solely a result of trade tensions.

Bitcoin reached a record high of $US107,071.86 ($A175,211.87) on January 20, the day Trump was sworn in as the 47th US President. Picture: Nicolas Tucat / AFP

After a strong rally post-Trump’s election, some crypto investors are feeling let down by the lack of immediate moves to foster crypto-friendly policies or loosen regulations under his administration.

Bitcoin reached a record high of $US107,071.86 ($A175,211.87) on January 20, the day Trump was sworn in as the 47th US President, and it surged 40 per cent following the election as hopes built for crypto-friendly regulations.

Trump, who once called cryptocurrency a scam, later embraced the digital asset, even vowing to make the US the “crypto capital of the planet”.

Wealth analyst’s advice for Aussies

Digital wealth analyst Sydel Sierra has warned Aussies against panic selling at a loss.

“Zoom out - literally - is my advice,” the Digital Wealth Group founder said in a statement provided to news.com.au.

“When you zoom in on the charts over a 24 hour period, it’s quite daunting .. but if you zoom out, it’s a lot easier to see the macro cycles at work; as the saying goes: trust the process.

“A face melting bull market is imminent - hold your stance. It’s a pullback not a crash, in my opinion - I’m not worried, and I have a lot invested.”

“Go outside, don’t watch TV, don’t go online, don’t read the newspaper - if you do, you’ll worry yourself sick.”

Originally published as Cryptocurrency slides as Trump’s trade war rattles markets