Bitcoin (BTC) saw a sharp decline as trading began in Asia, falling by 8% amid mounting concerns over the escalating trade war between the U.S. and other major economies.

The new wave of tariffs, announced by Canadian Prime Minister Justin Trudeau, set the stage for a potential global economic slowdown. Canada imposed 25% tariffs on U.S. imports, such as beverages and household goods, in response to U.S. tariffs on Canadian, Mexican, and Chinese goods. China, in turn, promised to retaliate through unspecified measures, adding fuel to the fire.

The fear that the trade tensions could stifle global growth and increase inflationary pressures has weighed heavily on investor sentiment, leading to a sell-off in riskier assets. Bitcoin’s drop appears to mirror the broader market uncertainty. Alongside Bitcoin, the broader crypto market also saw losses, with the CoinDesk 20 Index falling by more than 2%, reflecting a general risk-off attitude across both traditional and digital markets.