• Bitcoin fell 4.72% over the weekend and another 3.50% during Monday’s Asian session as tensions driven by Trump’s tariffs have investors derisking their positions.
• Over the weekend, China responded to Trump’s tariffs by indicating interest in imposing tariffs on US goods, while Canada imposed a 25% tariff on CA$155 billion worth of US goods.

Bitcoin tumbled below $100,000 over the weekend, extending losses into today as threats of a possible trade war rock markets worldwide.

While most of Bitcoin’s price decline came this weekend, weakness began when its price failed to swing higher than the $108,000 level two weeks ago (Jan. 20).

A failure to swing higher can signify insufficient buy pressure to push prices higher. If that is the case, prices will seek the next major liquidity level, which could mean lower prices in the interim, as seen over the last two weeks.

Scaling down to a lower time frame, price continued to break lower below $99,000 before retracing to an internal supply zone between the 50.00% and 61.80% Fibonacci levels (the golden zone for retracements) on Thursday, Jan. 30.

After being rejected by internal supply, the price broke down further on Friday, Jan. 31, and over the weekend to settle at the next major demand level, between $92,000 and $96,000.

Bitcoin’s price has found some support at $92,000 and is currently up 4.92% from Asian lows of $91,176.

Wider trade wars stifle markets

Meanwhile, the wider economic landscape faces uncertainty as a brewing trade war between the US and several of its trade partners, including Canada, Mexico, and China rocks various markets.

The US tariffs on its largest trade partners, which include a 25% tariff on imports from Canada and Mexico, and a 10% tariff on Chinese imports have sparked tensions between nations.

In response, Canada imposed a 25% tariff on CA$155 billion worth of US goods, Mexico has announced tariffs on US goods but has not provided details, while China also announced plans to impose retaliatory tariffs on US goods.

The result is uncertainty around the expansion of global trade and a derisking of portfolios, with cryptos being one of the first on the chopping block.

Solana-based meme coin FARTCOIN has steadily declined over the past week. It has shed 31% of its value in the past seven days amid waning demand.

As the bearish sentiment against the meme coin strengthens, FARTCOIN appears poised to extend its decline to a two-month price low.

FARTCOIN Witnesses Weakening Demand

The double-digit decline in FARTCOIN’s value has pushed its price below the 20-day exponential moving average (EMA). At press time, this key moving average forms a dynamic resistance level above FARTCOIN’s price at $1.04. The token would struggle to break above this level if demand continues to plummet. 

An asset’s 20-day EMA measures its average trading price over the past 20 days, giving more weight to recent prices to better reflect short-term trends. When an asset’s price falls below this key moving average, it signals weakening momentum and a bearish shift. This suggests that FARTCOIN’s selling pressure is increasing, and unless demand picks up, the asset could continue declining.

Additionally, FARTCOIN’s falling Relative Strength Index (RSI) reflects the waning buying activity in the market. At press time, its RSI stands at 40.22.

This momentum indicator measures an asset’s oversold and overbought market conditions. It ranges between 0 and 100, with values above 70 suggesting that the asset is overbought and due for a correction. On the other hand, values under 30 indicate that the asset is oversold and may witness a rebound. 

At 40.22, FARTCOIN’s RSI  indicates that the asset is in a bearish zone but not yet oversold, suggesting weakening momentum and increased selling pressure. 

FARTCOIN Price Prediction: Will It Sink or Surge?

Readings from FARTCOIN’s Fibonacci Retracement tool suggest that the Solana-based meme coin risks falling to a two-month low of $0.14 if buying activity remains subdued. The token last traded at this low on December 3.

However, if market sentiment shifts and buyers increase demand for FARTCOIN, they could push its price above the 20-day EMA dynamic resistance at $1.04 and toward $1.13.

Jeff Park, Head of Alpha Strategies at Bitwise Asset Management, stated that a prolonged tariff war could have a substantial positive impact on Bitcoin over time.

Over the weekend, President Donald Trump imposed tariffs on Canada, Mexico, and China.

Tariff War: Good for Bitcoin?

President Trump has imposed a 25% tariff on imports from Canada and Mexico. Additionally, a 10% tariff on Chinese goods and a 10% tariff on Canadian energy resources are implemented. According to the BBC, Canada and Mexico have also announced plans to impose retaliatory tariffs.

In a recent post on X, Park outlined the Triffin dilemma and President Trump’s personal objectives to explain Bitcoin’s long-term rise.

“Tariffs might be just a temporary tool, but the permanent conclusion is that Bitcoin is not only going higher—but faster,” Park wrote.

Park elaborated that the Triffin dilemma stems from the US dollar’s status as the world’s reserve currency, granting it an “exorbitant privilege.” This privilege results in three structural effects: an overvalued dollar, a persistent trade deficit, and lower borrowing costs for the US government. 

While the US benefits from cheaper borrowing, it seeks to correct the imbalances of an overvalued dollar and continuous trade deficits. Therefore, Park suggests that tariffs are being used as a negotiation tactic to push for a new international agreement. This, he argues, is similar to the 1985 Plaza Accord, aimed at weakening the dollar.

Moreover, Park argues that Trump has a personal stake in this strategy. Given his heavy exposure to real estate, his primary objective is to bring down the 10-year Treasury yield. 

In a scenario of a weaker dollar and falling US interest rates, risk assets in the US could surge while foreign economies struggle with rising inflation and currency devaluation. Faced with financial instability, Park predicts global investors will turn to alternative assets.

“The asset to own therefore is Bitcoin,” Park noted.

He emphasized that as economic tensions escalate, Bitcoin’s ascent will accelerate.

President Trump’s Tariffs Spark Crypto Market Collapse

Meanwhile, the threat of a trade war sent the crypto market plunging. Over the past few hours, Bitcoin briefly dropped to a minimum of $91,281, while Ethereum fell as low as $2,143. This has resulted in billions being wiped from the market

According to Coinglass, total liquidations exceeded $2.23 billion within the past 24 hours. 

“Worst liquidation event in history in a single day,” crypto analyst Miles Deutscher posted on X (formerly Twitter).

Deutscher added that it was worse than the LUNA and FTX collapses, which saw $1.6 billion in liquidations.

Of the total liquidations, $1.88 billion came from long positions and $349.81 million from short positions. In total, 726,788 traders were liquidated.