Will Bitcoin Price Decline Continue As Donald Trump Threatens Canada Trade Retaliation?

Bitcoin price surges to $88,000 amid US-Canada trade tensions, with volatile markets eyeing Trump's tariff threats and upcoming Crypto Summit.
Will Bitcoin Price Decline Continue As Donald Trump Threatens Canada Trade Retaliation?

Highlights

  • Bitcoin rebounds to $88,313 despite a 7% drop in 24 hrs amid U.S.-Canada trade tensions.
  • Trump's tariff threats caused market jitters, prompting a brief dip below $82,000 for Bitcoin
  • White House to discuss U.S. crypto strategy at Crypto Summit, possibly influencing Bitcoin's surge.

Bitcoin’s price has surged above $88,000 despite ongoing market uncertainty fueled by escalating trade tensions between the United States and Canada.

However, the cryptocurrency market remains volatile as investors react to President Donald Trump’s latest tariff measures, which have triggered a series of retaliatory actions. As the trade dispute intensifies, analysts are watching whether Bitcoin will maintain its recovery or face another downturn.

Advertisement
Advertisement

Donald Trump Threatens Canada with Trade Retaliation

According to a recent post on X by U.S. President Donald Trump, the United States will impose additional tariffs if Canada follows through with its retaliatory measures. Trump warned that any tariff increase from Canada would be met with an equal or greater response from the U.S.

Canada announced a 25% tariff on $20.5 billion worth of U.S. imports in response to the new trade restrictions. Prime Minister Justin Trudeau condemned the tariffs, calling them unfair and harmful to businesses on both sides of the border. “We will relentlessly fight to protect Canada’s economy,” Trudeau said in a televised statement.

Mexico has also indicated that it may announce its own countermeasures by the end of the week. Meanwhile, China has already imposed new tariffs on several U.S. agricultural products, raising concerns about further disruptions to global trade.

Advertisement
Advertisement

Bitcoin Price Volatility Amid Trade Disputes

Bitcoin’s price remains unstable as traders monitor the impact of global trade conflicts. After briefly dropping below $82,000 following the tariff announcement, Bitcoin price rebounded to $88,313. However, the cryptocurrency is still down 7% in the past 24 hours and 16% over the last month.

Market analysts have pointed to Trump’s economic policies as a key factor influencing Bitcoin price movements. The trade war has led to increased uncertainty in traditional markets, driving some investors toward cryptocurrencies. However, sharp fluctuations in Bitcoin’s value suggest that traders remain cautious about the long-term effects of these tariffs.

Ethereum and Solana also experienced declines, retracing earlier gains from Trump’s recent push for a U.S. “strategic crypto reserve.” The drop in crypto prices followed a surge on Sunday when Bitcoin briefly reached $94,800 before selling pressure brought it down again increasing tensions on BTC price stuck between $70k and $90K.

Advertisement
Advertisement

Crypto Investors Await White House Crypto Summit

The White House is set to hold its first Crypto Summit on Friday, where officials are expected to discuss plans for a national cryptocurrency strategy. Investors are closely watching for any announcements related to tax policies or regulatory measures that could impact Bitcoin’s future price.

Rumors circulating on social media suggest that Eric Trump and crypto advocate David Bailey may have revealed details about a potential “no capital gains tax” on American-based cryptocurrencies. If confirmed, such a policy could trigger another price rally, pushing Bitcoin back above the $100,000 mark.

Meanwhile, major exchanges have reported a surge in Bitcoin inflows, with traders moving large amounts of the cryptocurrency in anticipation of further price swings. Analysts believe that Bitcoin’s price direction will depend on both the outcome of the summit and developments in the ongoing trade dispute.

Advertisement
Kelvin Munene Murithi
Kelvin Munene is a crypto and finance journalist with over 5 years of experience, offering in-depth market analysis and expert commentary . With a Bachelor's degree in Journalism and Actuarial Science from Mount Kenya University, Kelvin is known for his meticulous research and strong writing skills, particularly in cryptocurrency, blockchain, and financial markets. His work has been featured across top industry publications such as Coingape, Cryptobasic, MetaNews, Cryptotimes, Coinedition, TheCoinrepublic, Cryptotale, and Analytics Insight among others, where he consistently provides timely updates and insightful content. Kelvin’s focus lies in uncovering emerging trends in the crypto space, delivering factual and data-driven analyses that help readers make informed decisions. His expertise extends across market cycles, technological innovations, and regulatory shifts that shape the crypto landscape. Beyond his professional achievements, Kelvin has a passion for chess, traveling, and exploring new adventures.
Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.