Bitcoin price edges below $95,500 on Monday after declining nearly 5% the previous week.
President Donald Trump’s tariffs on major trading partners, including China, Canada, and Mexico, wipes $2.26 billion from the crypto market.
Nick Forster, Founder of Derive.xyz, told FXStreet that recent tariffs imposed are likely to increase inflation, which could dampen investor sentiment in crypto markets.
Bitcoin (BTC) price edges below $95,500 on Monday after declining nearly 5% the previous week. Fears caused by United States (US) President Donald Trump’s tariffs on major trading partners, including China, Canada, and Mexico, wipe $2.26 billion from the crypto market. Nick Forster, Founder of Derive.xyz, told FXStreet that recent tariffs imposed are likely to lead to increased inflation, which could dampen investor sentiment in crypto markets.Bitcoin’s price declined on Friday as it dropped below a key support level. This correction was fueled by the implementation of US President Trump’s announced tariffs on major trading partners, including China, Canada, and Mexico, on Saturday, which exerted some selling pressure on the overall crypto market. At the time of writing on Monday, Bitcoin continued its decline, reaching a low of $91,231 in the early Asian trading session. This downturn triggered a wave of liquidations, resulting in over $2.26 billion in total liquidations and more than $416 million specifically in BTC, according to data from CoinGlass.Liquidation Heatmap chart. Source: CoinglassBTC exchange liquidations chart. Source: CoinglassIn an exclusive interview with FXStreet, Nick Forster, Founder of Derive.xyz, said, “The recent tariffs imposed by Trump are likely to lead to increased inflation, which could dampen investor sentiment in crypto markets.”Forster continued that as inflationary pressures rise, the Fed may maintain or even increase interest rates, which historically has led to less favorable conditions for crypto assets. This could result in a contraction for the digital asset sector over the next few quarters.“Derive’s options market is currently pricing in a 22% chance of BTC reaching $75K during the same period. There’s an 11% chance that BTC will drop below $65K by June 27 and a 25% chance it will fall below $80K,” says Forster.According to Santiment’s data, the talks about buying the dip have calmed down. The crowd seems less excited about buying at these prices, and big targets like $110,000–120,000 for Bitcoin are getting less attention, suggesting some investors are stepping back from the market.Bitcoin crowd reaction chart. Source: SantimentA CryptoQuant report provides some optimistic signs for Bitcoin. According to the report, the liquidity in the crypto market has continued to expand, with the total market capitalization of stablecoins surpassing the $200 billion mark. The graph below shows that the total value of USD-denominated stablecoins reached $200 billion last week, and currency reads $20
