Bitcoin Approaches $94K as Asian Traders Reflect on Trump's Trade Conflict

Key Highlights:

The Asian market opened significantly down, with BTC, ETH, SOL, and XRP declining notably due to rising tariff concerns.
President Donald Trump intensified these concerns over the weekend, leading to further market volatility.
The TRUMP token fell by 12%.

Market Overview:

Major digital currencies such as Bitcoin (BTC), Ethereum (ETH), Solana (SOL), and XRP experienced a significant drop as trading commenced in Asia. By mid-morning in Hong Kong, BTC saw an 8% decrease, trading over $93,100, according to CoinDesk Indices data.

As the day progressed, BTC stabilized around $93.9K.

Meanwhile, Ethereum (ETH) plummeted nearly 20%, trading below $2,500, while SOL dropped by 7% to $193. XRP fell by 23%, trading around $2.

Index Performance:

The CoinDesk 20 (CD20), which tracks the largest digital assets, declined by nearly 17%. Trump’s memecoin is similarly struggling with a 12% drop.

World Liberty Financial (WLFI), linked to Trump, reported a 20% decrease in crypto investments between January and recent events, as indicated by SpotOnChain data.

World Liberty Financial’s $242.77M crypto investment made between January 19 and 31 has suffered a loss of over $51.7M (-21%) due to Trump’s tariffs affecting market sentiment.

Market Dynamics:

Data from CoinGlass highlights that around $1.3 billion in long positions were liquidated over the past 12 hours, including $400 million in long ether positions and $300 million in long BTC positions.

This market reaction follows Trump’s new tariffs imposed on Canada and Mexico.

Analysts express skepticism regarding tariff benefits, with a Wall Street Journal editorial recently labeling it the “Dumbest Trade War in History.”

The European Union has warned of a strong response to any tariffs affecting its member states. A Politico spokesperson stated, “Tariffs create unnecessary economic disruption and drive inflation. They are hurtful to all sides.”

Interestingly, the U.K. appears to be exempt from these tariffs, with Trump indicating potential negotiations could take place.

Trump defended his tariff stance, alleging critics were funded by China in several Truth Social posts this weekend.

UPDATES (Feb. 3, 04:30 UTC): Pricing updates, WLFI loss mentioned.