Cryptocurrencies experienced a significant drop amid the conflict over trade tariffs
The imposition of tariffs in the U.S. heavily impacted the cryptocurrency market. Bitcoin dropped to $93,000, its lowest point in 2025, and Ether, the second most important cryptocurrency, fell by 27%.
Donald Trump's signing of an executive order to impose tariffs on key trade partners triggered a massive sell-off of cryptocurrencies. A smaller-cap token index is on track to suffer its biggest drop in nearly three years in just two days.
The MVIS Crypto Compare Small-Cap index plummeted by 21% on Monday, adding to an 11% decline the previous day. Ether, the second-largest cryptocurrency, briefly dropped 27% before reducing its losses. Bitcoin, on the other hand, held up better, reaching a low of $93,000 (its lowest point since December 31) before rebounding to $99,000 by midday.
Global stock markets also fell after Trump threatened tariffs on the European Union, which would be added to existing tariffs on Canada, Mexico, and China. However, by late Monday, the cryptocurrency drop began to stabilize after the U.S. government decided to suspend tariffs on products imported from Mexico for a month while both parties negotiated an agreement.
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