Bitcoin (BTC) has declined by more than 15% since Feb. 3 after US President Donald Trump threatened tariffs on China, Mexico, and Canada.
Economic uncertainty and fear of a trade war affect risk-on appetite, leading to Bitcoin selling off as a risk asset.
Bitcoin's 24/7 trading and its quick reaction to macroeconomic developments contribute to its volatility and sell-off on news of Trump's tariffs.
Global investors are hedging against the economic impact of tariffs by turning to fiat alternatives like the euro, gold, and Japanese Yen, rather than Bitcoin.