Cryptocurrencies, including bitcoin, saw sharp declines on Feb. 2 after US President Donald Trump announced new import tariffs on Canada, Mexico, and China.

Bitcoin dropped 7% to US$93,768.66, while the CoinDesk 20 index, which tracks the top 20 cryptocurrencies by market capitalization, dropped by 19%.

Ethereum decreased by 20%, hitting its lowest value since November.

The market downturn started late Feb. 2 when Trump signed an order imposing 25% tariffs on imports from Canada and Mexico, and 10% tariff on imports from China.

These tariffs, set to take effect on Feb. 4, will affect nearly US$1.6 trillion in trade between the US and the three countries.

While bitcoin is often seen as a hedge against economic instability, its short-term price movements align with risk assets.