Bitcoin plunges after Trump's remarks on 'imposing tariffs on Mexico and Canada on time'

The cryptocurrency market crashed heavily in the late US session on Monday, with Bit continuing its downward trend and resulting in hundreds of millions of dollars in liquidations. This crash was triggered by reports of US President Donald Trump's tariffs on Mexico and Canada, sparking a sell-off. This is the second instance where the President's tariffs have impacted the cryptocurrency market, demonstrating Bit's increasing responsiveness to macroeconomic events. Bit, the cryptocurrency market reacts to Trump's tariffs Trump stated that the US is 'on time' with imposing tariffs on Canada and Mexico. According to Reuters, this is due to an investigation into whether tariffs will be imposed on Canadian and Mexican goods when an agreed deadline for a temporary suspension comes up next week. Trump reportedly mentioned that neighboring countries and allies have treated the US 'very unfairly'. Immediately after this report, Bit price fell below $92,000. Similarly, the cryptocurrency market crashed, with the total market capitalization decreasing by up to 7%. Meanwhile, Coinglass data shows that nearly $1 billion in liquidations occurred across the cryptocurrency industry due to this crash. Coinglass reported that 299,006 traders were liquidated in the past 24 hours, with a total liquidation value of $918.18 million. The data shows that most of the liquidated positions were long positions, as Bit price fell to $91,514. This is not the first time that Trump's tariffs have impacted the cryptocurrency market. In early February, over $2 billion disappeared from the cryptocurrency market, leading to a historic liquidation event. BeInCrypto reported that this occurred after Trump imposed a 25% tariff on imports from Canada and Mexico. After reports of a tariff deferral, the cryptocurrency market recovered. Bit's Coinbase premium hit local highs shortly after the temporary suspension three weeks ago. These events align with a recent JPMorgan survey, which identified tariffs and inflation as the factors most likely to impact the 2025 market. JPMorgan's global digital markets head, Eddie Wen, mentioned market volatility in response to new headlines about the Trump administration's plans, citing an "immediate reaction" in the market. Amidst these adjustments, MicroStrategy (now Strategies) chairman Michael Saylor viewed the recent crash as an opportunity to purchase Bit at a discounted price. His recent "Bit fire sale" comments echo the views of Robert Kiyosaki. According to BeInCrypto, the author of "Rich Dad Poor Dad", Robert Kiyosaki, has urged investors to buy BTC when the market crashes, describing it as a "major asset-building opportunity". Meanwhile, popular cryptocurrency analyst James on X emphasized that Trump has caused $734 billion to disappear from the cryptocurrency market since his second term began on January 20th. At the time of writing, Bit is trading at $92,047, down 3.4% since the start of the Tuesday session.