PANews reported on February 3rd that according to Marketwatch, cryptocurrencies plummeted after Trump announced additional tariffs on Canada, Mexico and China. Bitcoin lost the key $100,000 mark and hit a three-week low of around $91,251.11 on Monday. Ethereum fell by about 25% at one point to its lowest level since early September last year. The specter of a global trade war has made investors nervous, causing them to flee risky assets. While many see Bitcoin as a long-term hedge against inflation and uncertainty, in the short term it is more of a risky asset that could react negatively to any uncertainty surrounding the trade war.

On the other hand, analysts pointed out that the explosion of DeepSeek, a low-cost AI model of a Chinese artificial intelligence (AI) startup, also hit cryptocurrencies because it broke the long-standing path dependence of the global AI industry on "stacking computing power" and shook the U.S. AI industry, stimulating investors to sell the stocks of U.S. AI giants and cryptocurrency positions. Investors see $90,000 as a key support level for Bitcoin, and some warn that if Bitcoin falls sharply below this support level, Bitcoin may fall further to $80,000.