Bitcoin Drops as Tariff News Hits Markets; White House Confirms February 1st Deadline

Bitcoin (BTC) saw a sharp reversal in price on Saturday after President Trump’s administration confirmed that a series of 25% tariffs on Mexico and Canada will take effect on February 1. The announcement dashed hopes that tariffs might be delayed, as previously speculated.

On Thursday, Bitcoin had surged past $106,000, but after the tariff news broke, the price quickly fell by 2%, dropping back to around $104,000. U.S. stocks also showed signs of strain, retracting some of their earlier gains, although they ultimately ended the day with modest increases.

A Reuters report earlier in the day had suggested that the tariff hikes could be delayed until March 1, giving markets a brief reprieve as countries could apply for exceptions to the tariffs. However, the White House rejected the delay, with Press Secretary Karoline Leavitt confirming that the tariffs, including a 10% levy on China, will be enforced starting tomorrow.

Bitcoin initially rebounded above $106,000, pushing toward a potential new high of $109,000. However, with the tariff confirmation, the price quickly dropped again, nearing $103,000 at the time of writing — a 2.3% decrease in the last 24 hours.

The broader CoinDesk 20 Index saw a 1.3% decline, with Ethereum (ETH) showing some resilience, up by 1.2%. Meanwhile, traditional markets, including U.S. stocks, closed the day with slight gains, though they had moved well off their peak levels.