Donald Trump's re-election sent the value of bitcoin soaring
AFP

Bitcoin fell below $92,000 (AU$145,316.67) on Monday, after U.S. President Donald Trump confirmed plans to impose tariffs on imports from Canada and Mexico, triggering a large sell-off in the world market.

According to CryptoSlate figures, Bitcoin dropped almost 5% in the last 24 hours, reaching $90,850 (AU$143,527.56). It is the lowest Bitcoin has been since Feb. 2.

As of now, it is trading at $91,931 (AU$145,235.35), down 4.46% in the last 24 hours.

Trump's announcement also caused major digital assets to plunge more than 10% across the board in the past 24 hours.

While, Ethereum fell 10.61% to $2,523.37 (AU$3,861.57), XRP dropped 10.85% to $2.30 (AU$3.52), and Solana saw the biggest drop, falling 14.85% to $143.13 (AU$218.38).

Cardano lost 10.96%, trading at $0.6859 (AU$1.05). BNB lost 6.55%, reaching $615.13 (AU$941.32).

The U.S. market, including cryptocurrencies, reacted negatively after Trump confirmed that tariffs would be imposed on Canada and Mexico, starting March 4.

Trump made a statement on Monday, saying: "The tariffs are going forward on time, on schedule."

The tariffs include a 25% tax on all imports from Canada and Mexico, and a 10% tax on Canadian energy resources. After the announcement, the overall crypto market saw significant losses, with most major cryptocurrencies dropping more than 10%.

Bitcoin's previous high

Bitcoin had reached a high of $107,071.86 (AU$163,831.23) on Jan. 20, the day Trump became president. Since the November election, Bitcoin has surged by 40%, partly due to expectations that Trump would support cryptocurrencies.

Now, analysts are closely watching if Bitcoin stays above the $90,000 level. If it falls lower, it might drop to around $80,000. Historically, Bitcoin has seen corrections of about 30% during strong market periods.

Impact of tariffs and retaliation

The market sell-off caused nearly $800 million in liquidated positions in the last 24 hours. This happened when traders had to close positions due to falling prices. About $600 million in long positions were affected, while $200 million in short positions were also liquidated.

With tariffs going into effect soon, there are concerns about how Canada and Mexico might respond. This uncertainty could continue to affect the cryptocurrency market in the coming weeks.

Crypto in Australia

A survey by Independent Reserve, an Australian cryptocurrency exchange, asked 2,100 Australian adults about their views on Trump's impact on cryptocurrencies, Cointribune reported.

The survey, conducted on Feb. 21, 2025, showed mixed opinions:

  • 31% of Australians believe Trump is good for cryptocurrencies
  • 8% think he is harmful to them
  • 60% are neutral

Among crypto investors, 50% view Trump positively, while 44% are neutral. Only 6% have negative views on Trump's role in crypto. For non-investors, 20% have favorable opinions.

"There is a strong expectation that his pro-crypto policies will foster innovation and broader adoption of digital assets," Adrian Przelozny, CEO of Independent Reserve, said.

Reserve Bank of Australia and e-AUD

The Reserve Bank of Australia is exploring the idea of launching a digital currency called the e-AUD, while Trump has banned the use and development of central bank digital currencies in the U.S.