Bitcoin Falls Below $85,000 Amid Tariff Announcement

Bitcoin has fallen below $85,000, continuing its sharp decline as traders react to President Donald Trump’s announcement of new tariffs on European imports.

Speaking at his first cabinet meeting on Feb. 26, U.S. President Donald Trump reiterated his intention to impose a 25% tariff on European Union goods, as reported by The Guardian. This announcement has significantly impacted the cryptocurrency industry.

Bitcoin (BTC) is currently down 4% in the last 24 hours, trading at $84,600 at press time. The broader crypto market has also suffered, with the total market cap shrinking by 4% following President Trump’s remarks, according to CoinGecko.

CoinGlass data shows that total liquidations have surpassed $765 million in the past 24 hours, adding to the $1.5 billion wiped out on Feb. 25.

According to SoSoValue data, the market decline has coincided with the largest one-day withdrawal from Bitcoin ETFs since their inception, with $937.78 million leaving on Feb. 25. This trend indicates a significant change in institutional investor sentiment, bringing total outflows for the last week to almost $1.5 billion.

Since Trump took office in January, Bitcoin has fallen about 20% from its peak of $109,225. Following Trump’s election victory and hopes for a more favorable regulatory environment, there was an optimistic momentum that has now turned into sell-offs. Hopes for rapid implementation of pro-crypto policies have waned as the administration prioritizes aggressive trade policies.

Security concerns have also affected investor sentiment. The market’s liquidity has diminished due to the collapse of the Solana memecoin boom, and worries over centralized exchange vulnerabilities have intensified following the unresolved $1.4 billion Bybit hack.

While some analysts view this correction as a healthy reset, others warn that a decline below $80,000 could trigger another round of liquidations, possibly pushing Bitcoin toward $70,000. Traders remain cautious as macroeconomic uncertainty rises and anticipate potential regulatory changes that might restore trust in the digital asset market.