Bitcoin Slips For Third Consecutive Day as Canada’s Trudeau Retaliates to Trump’s Tariffs

Bitcoin (BTC), the leading cryptocurrency by market value and the only macro asset open for trading over the weekend, has been trading weak for the third straight day, with its price hovering below $100,000.

This decline in price is attributed to the renewed trade war between the United States and its major trading partners, Canada and Mexico. Canada has announced retaliatory import tariffs against the United States, joining Mexico, which had earlier taken similar action.

Prime Minister Justin Trudeau said Canada would impose 25% tariffs on U.S. goods, including drinks, appliances, and other products, in response to President Donald Trump’s decision to impose a 25% tariff on Canadian and Mexican imports and 10% on goods from China.

China, meanwhile, has said it would file a case against the U.S. at the World Trade Organization and take unspecified countermeasures to safeguard its interests.

Inflation Concerns

The ongoing trade war, coupled with mass deportations of illegal migrants from the United States, could add to inflation, weakening the case for speedy Fed rate cuts.

Bitcoin’s price weakness is likely a reflection of these concerns, offering risk-off cues to traditional risky assets. The broader crypto market has followed suit, with the CoinDesk 20 Index falling over 2%.

Conclusion

In conclusion, the price of Bitcoin has been negatively impacted by the ongoing trade war and concerns about inflation. As the situation continues to unfold, it is essential for investors to stay informed and adapt their strategies accordingly.

FAQs

Q: What is the current price of Bitcoin?

A: The current price of Bitcoin is below $100,000.

Q: What are the reasons behind Bitcoin’s price weakness?

A: The reasons behind Bitcoin’s price weakness include the renewed trade war between the United States and its major trading partners, Canada and Mexico, as well as concerns about inflation.

Q: How has the broader crypto market been affected?

A: The broader crypto market has followed suit, with the CoinDesk 20 Index falling over 2%.

Q: What are the implications of the trade war for the global economy?

A: The trade war could add to inflation, weakening the case for speedy Fed rate cuts and potentially impacting the global economy.

Q: What is the impact of mass deportations on the U.S. economy?

A: The mass deportations of illegal migrants from the United States could also add to inflation and potentially impact the economy.

Q: How should investors respond to these developments?

A: Investors should stay informed and adapt their strategies accordingly, taking into account the ongoing trade war and concerns about inflation.