Bitcoin’s worst drop in weeks—and it might not be over yet

Bitcoin fell below $100,000, dropping to a three-week low around $96,606 early Monday morning following new tariffs imposed by U.S. President Donald Trump. The move followed a wider sell-off in cryptocurrency markets, with ether also declining approximately 12% to levels not seen since early November.

Over the weekend, Trump announced a 25% tariff on imports from Mexico and Canada and a 10% tariff on goods from China, effective Tuesday. These developments contributed to investor concerns that such tariffs could negatively impact global growth and corporate earnings. As cryptocurrencies trade around the clock, they have recently mirrored broader market sentiment during such geopolitical tensions. Chris Weston, head of research at Pepperstone, remarked, “Crypto is really the only way to express risk over the weekend, and on news like this crypto resorts to a risk proxy.”

Trump further indicated that tariffs on the European Union would “definitely happen,” claiming the EU had “really taken advantage of us.” He expressed concerns that the EU does not import U.S. cars or farm products and acknowledged there may be “short term a little pain” resulting from the tariffs.

The on-chain options market for Bitcoin (BTC) on Derive.xyz indicated a 22% probability that prices could fall to $75,000 by March 28, a significant increase from 10% the previous week. This rise in probability correlates with fears that the renewed tariff war will contribute to global inflation, complicating actions by central banks like the Federal Reserve to cut interest rates. Derive noted that increased tariffs are likely to hurt investor sentiment in crypto markets.

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Bitcoin had already seen an 11% drop to $93,700 over four days, according to CoinDesk data. The price of ether fell below $2,200, marking its lowest value since August 5. BTC appears to be forming a double top reversal pattern, which may open the possibility for a further decline to around $75,000, as suggested by Arthur Hayes, former BitMEX CEO.

Despite the current downturn, the broader outlook remains somewhat positive, per insights from Derive. Active spot ETF filings for various assets, including DOGE, SOL, XRP, and LTC from companies like Bitwise and Grayscale, could lead to increased capital inflows into the digital asset market if the SEC grants approval. This activity may lend greater legitimacy to the cryptocurrency sector.

According to CoinDesk, Andre Dragosch, head of Europe at Bitwise, commented that the tariffs are exerting shockwaves through the market due to USD strength and an overall contraction in the global money supply. He anticipates that the Federal Reserve may need to reignite quantitative easing to prevent further declines in financial conditions and to mitigate slowing global growth.

The recent downturn in cryptocurrency values has impacted speculative digital assets significantly. During the Sunday trading session, Bitcoin fell as much as 4.3%, while Ethereum dropped up to 8%. Alternative coins experienced even more acute selling pressure, with Dogecoin falling approximately 14% and down 45% from highs achieved following Trump’s election victory. Other altcoins like XRP, Cardano, Avalanche, and Chainlink each saw declines exceeding 10%.

Caroline Bowler, CEO of BTC Markets, stated, “Trump’s tariff war is impacting the whole market,” adding that fears surrounding trade wars and stagflation are creating widespread apprehension across both altcoins and Bitcoin. The selling pressure resulted in Bitcoin hitting roughly $97,000, the lowest level observed over the past two weeks.

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