Bitcoin Holds $79K Despite Trump’s 50% Tariff Threat on Canada

The proposed levies target Canadian vehicles, trucks, and steel, escalating a dispute that Prime Minister Mark Carney has labeled a trade war. While the announcement initially triggered a sell-off, buyers quickly absorbed the pressure. This reaction stands in stark contrast to earlier this year, when similar trade tensions caused significant market volatility and a 5% drop in Bitcoin price. Analysts attribute the current stability to strong upward momentum, as the cryptocurrency had already climbed nearly 27% since mid-August.

Institutional demand remains a primary driver for the asset. U.S. spot Bitcoin ETFs recorded approximately $1.92 billion in inflows over the last five sessions, pushing total assets under management for these products above $90 billion. Simultaneously, the U.S. Treasury’s decision to expand liquidity-support buybacks for long-dated government securities has lowered yields, further encouraging risk-on sentiment. While the automotive industry warns that the 50% tariff could disrupt supply chains and inflate vehicle prices, market participants appear to be pricing in the possibility that the threat serves as a bargaining tactic rather than a final policy decision.