Bitcoin Drops to $95,000 in 2025 Amid Trump’s New Tariffs Impacting Crypto Stocks

Essential Insights

• Bitcoin and crypto-related stocks experienced a notable decline Monday morning due to apprehensions about the Trump administration’s newly introduced tariffs.
• On Saturday, Trump enforced 25% tariffs on goods from Mexico and Canada, alongside a 10% tax on Chinese imports.
• Investors worry that tariff-driven inflation may hinder future interest rate reductions, diverting attention away from high-risk assets like Bitcoin.

Bitcoin fell to approximately $95,000 from Sunday night into Monday morning, with multiple cryptocurrency stocks also falling sharply during premarket trading as markets digest the potential consequences of the Trump administration’s weekend tariff announcements.

Shares of major crypto exchanges and mining companies such as Coinbase (COIN), Robinhood (HOOD), MicroStrategy (MSTR), Mara Holdings (MARA), and Riot Platforms (RIOT) each dropped by 5% or more on Monday morning.

President Donald Trump implemented his long-anticipated tariffs on Saturday, imposing a 25% duty on all imports from Canada and Mexico, plus an additional 10% tariff on goods from China. These countries have announced plans to retaliate, potentially with their own tariffs.

If these tariffs lead to higher prices, the resulting inflation could prevent the Federal Reserve from lowering interest rates further, negatively impacting riskier, non-yielding assets like Bitcoin (BTCUSD). The market sentiment turned bearish as stock futures plunged early Monday.

Since Trump's election victory in November, Bitcoin and related stocks had rallied, anticipating a more favorable regulatory climate for cryptocurrencies. Bitcoin reached a peak above $109,000 ahead of Trump's inauguration last month, but Monday marked the fourth consecutive day of declines for the asset.

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