Bitcoin and Other Cryptocurrencies Experience Sharp Decline

The prices of cryptocurrencies plummeted sharply on Monday. Bitcoin reached its lowest level in the last three weeks, while Ethereum recorded its lowest price since the beginning of September. This decline is attributed to the looming threat of a global trade war, which has significantly unsettled investors and prompted them to divest from riskier assets.

The world’s most famous cryptocurrency, Bitcoin, dropped to $92,786 on Monday morning. Ethereum fell to $2,465.

During the week, U.S. President Donald Trump announced a 25% tariff on goods imported from Mexico and Canada, and a 10% tariff on goods imported from China. Canada and Mexico, the United States' primary trade partners, immediately promised to retaliate with sanctions, while China stated it would challenge Trump at the World Trade Organization (WTO).

Cryptocurrencies have shown notable sensitivity to overall market sentiment lately. Investors are concerned that reciprocal tariffs could negatively impact economic growth, company revenues, and may also lead to increased inflation.