Bitcoin’s price nosedived to $82,133 this week, rattling investors amid escalating U.S. trade wars and a massive crypto exchange hack. Here’s how the drama unfolded and what experts say you should do next.
February 1–4: Trump Slaps 25% Tariffs on Canada, Mexico
President Trump ignited global trade tensions on February 1, imposing sweeping tariffs via executive orders. Canada and Mexico faced 25% levies, excluding Canadian energy at 10%. Meanwhile, China received a 10% tariff targeting fentanyl precursors.
Markets recoiled instantly: Dow futures sank 1.4%, and Bitcoin dropped 3.5% to $94,500 by February 3. Analysts linked the sell-off to fears of inflation and supply-chain disruptions.
February 10–11: Steel and Aluminum Tariffs Spark Manufacturing Fears
Trump doubled down on February 10, raising steel and aluminium tariffs to 25% under Section 232. Previously exempt allies like the EU faced strict “melted and poured” rules.
Following this, manufacturing stocks slid, dragging Bitcoin below $92,000. Experts warned retaliatory measures could cripple industries reliant on imported metals. “This isn’t just about trade; it’s about market confidence,” tweeted economist Linda Yates.
February 13–14: ‘Fair and Reciprocal’ Plan Fuels Uncertainty
On February 13, Trump ordered a 180-day review of global trade imbalances, hinting at reciprocal tariffs. For instance, a 20% foreign levy could trigger a matching U.S. response. Although no immediate tariffs followed, Bitcoin wobbled near $90,000 as investors braced for auto and chip sector impacts. “Markets hate ambiguity,” noted crypto strategist Raj Patel. “This plan is a recipe for volatility.”
February 20–23: Bybit Hack
Chaos peaked mid-month as Bybit disclosed a $1.5 billion Ethereum hack on February 24. Simultaneously, Canada and Mexico delayed retaliatory tariffs, while China imposed 15% duties on U.S. energy exports.
Bitcoin tumbled to $90,850 as crypto liquidations hit $800 million. “The hack amplified existing fears,” said blockchain analyst Mei Chen. “Investors fled both stocks and crypto.”
February 24–26: Bitcoin Crashes to $83,000 Amid Trade War Fallout
Tariffs on Canadian and Mexican goods took full effect February 24, sparking retaliatory threats. Mexico deployed 10,000 troops to its border, while Canada targeted U.S. bourbon and steel.
Bitcoin plunged 10% in 48 hours, bottoming at $83,600. Analysts blamed the drop on dollar strength and synchronised stock-crypto sell-offs. “This was a perfect storm,” remarked trader Kyle Rivera.
February 27: Bitcoin Stabilizes, But Uncertainty Looms
By February 27, Bitcoin hovered near $84,000 with no new tariff announcements. However, bearish sentiment persisted as China’s retaliatory measures loomed. “The dust hasn’t settled,” warned economist David Lin. “More turbulence is likely.”
Should You Buy, Sell, or Hold?
Buy: “Dips like this are rare,” argued investor Maria Gonzalez. “Long-term holders should accumulate.”
Sell: “Exit if you can’t handle $70,000,” cautioned analyst Jake Thompson. “Tariffs could trigger another leg down.”
Hold: “Panic-selling locks in losses,” advised strategist Lila Park. “Wait for macroeconomic clarity.”
Why Tariffs Tanked Bitcoin
Investors pulled away from risky assets as trade wars raised concerns about global growth. A stronger dollar added pressure on Bitcoin, which typically performs better in weak-currency environments. The cryptocurrency also moved in sync with stock market declines, briefly losing its appeal as “digital gold.” Additionally, the Bybit hack further shook investor confidence, intensifying the sell-off.
Bottom Line: Bitcoin’s plunge reflects broader economic tremors. Not just crypto weakness. While tariffs dominate headlines, savvy investors are watching macroeconomic signals and regulatory responses. As one trader put it, “Survive February, thrive in March.”
Written By Fazal Ul Vahab C H
