On Monday, February 3, the cryptocurrency market collapsed by 20-30%: Bitcoin fell to $91,441.89 and Ethereum fell to $2,494.33. The main reason is the trade war between the United States, Canada, Mexico, and China after imposing tariffs of 25% and 10%.

Reuters wrote about it. The cost of cryptocurrencies represents the lowest since last September. The main reason behind the sharp decline in cryptocurrencies is the leak of a new trade resolved by the Trump administration. The US president imposed :
• 25% customs duty on goods from Canada and Mexico;
• 10% import fees from China.
These measures elicited an immediate response:
• Canada and Mexico have announced similar tariffs on the United States;
• China has announced its intention to challenge Trump's decision in the World Trade Organization (WTO).
As a result of these events, the financial markets, including digital currencies, came under severe pressure. Investors began to hysterically exit risky assets, including digital currencies.
The cryptocurrency market is highly sensitive to major economic events, especially when they threaten global economic stability. As Chris Weston, research director at Pepperstone, points out, digital currencies have become somewhat like "risk indicators", trading 24/7 and responding primarily to global changes.
The collapse of prices is also linked to investors' disappointment in Trump's cryptocurrency policy. During his election campaign, he promised to make the United States the "capital of digital currencies in the world" and established a special working group to develop new regulations for digital assets and even considered the possibility of forming a national digital currency reserve. However, so far, there have been no actual measures contributing to the development of the cryptocurrency market.