Bitcoin's price took a sharp dive, shedding 12% of its value in just three days, with a significant 7% drop occurring during the Asian session on February 3, 2025.

The cryptocurrency fell to $91,300, breaking decisively below the 50-day exponential moving average (EMA), which had been holding at $98,500. A partial rebound followed during the European session, bringing the price back to $95,000.

This downturn coincided with broader market turbulence sparked by U.S. President Donald Trump's announcement of new tariffs on imports from Mexico, Canada, and China. The news triggered $1.79 billion in liquidations across the crypto market within 24 hours, with long positions taking the brunt of the losses, totaling $1.57 billion. The market's reaction underscores the sensitivity of digital assets to macroeconomic policy shifts.

Before this sell-off, Bitcoin had been consolidating between $100,000 and $108,200 for several days in January, indicating a period of stability or indecision among traders. However, the latest political developments disrupted this balance, leading to a swift and intense sell-off.