Cryptocurrency prices declined significantly as fears of a global trade war drove investors away from riskier assets.

Bitcoin fell by more than 4% early Feb. 3 morning in Asia, hitting a three-week low of around US$96,606.

Ether, the second-largest cryptocurrency, also dropped around 12%, reaching levels not seen since early November.

The decline follows US President Donald Trump’s announcement of new tariffs including 25% on imports from Mexico and Canada and 10% on goods from China, set to take effect Feb. 4.

Analysts links the crypto sell-off to concerns over global growth and corporate earnings.

“Crypto is the only way to express risk over the weekend, and on news like this, crypto acts as a risk proxy,” said Chris Weston, head of research at Pepperstone.