Today in crypto, Bitcoin dipped below $100,000 following Donald Trump’s decision to impose strict import tariffs. Meanwhile, El Salvador continued expanding its Bitcoin holdings, and Kraken announced the upcoming delisting of Tether’s USDT along with four other stablecoins in Europe to comply with the Markets in Crypto-Assets Regulation (MiCA).
Bitcoin Drops Below $100K Following Trump’s Import Tariffs
For the first time in six days, Bitcoin has dropped below $100,000 following the signing of an executive order by U.S. President Donald Trump, which imposes import tariffs on goods from China, Canada, and Mexico.These tariffs have already sparked retaliatory measures from the three affected countries, and the crypto community remains divided on how this will impact the broader market. According to a February 1 statement from the White House, Trump is enforcing a 25% additional tariff on imports from Canada and Mexico and a 10% additional tariff on imports from China. However, energy resources from Canada will be subject to a lower 10% tariff. The statement further clarified that these tariffs are meant to hold Mexico, Canada, and China accountable for halting illegal immigration and preventing the influx of fentanyl and other dangerous substances into the U.S. Economists warn that these tariffs could increase inflation, prompting higher interest rates. This, in turn, may push investors away from riskier assets like crypto and toward traditional investments such as bonds and term deposits.
El Salvador Continues Bitcoin Accumulation Despite IMF Agreement
On February 1, El Salvador purchased two additional Bitcoin (BTC) as its National Bitcoin Office ramps up BTC accumulation. According to El Salvador’s national Bitcoin tracker, the country now holds over 6,055 BTC, currently valued at approximately $612 million. Recently, El Salvador rolled back its Bitcoin legal tender law, which previously mandated businesses to accept Bitcoin as a payment method. This decision aligns with the country’s recent agreement with the International Monetary Fund (IMF), under which El Salvador agreed to scale back public sector involvement in Bitcoin and privatize the Chivo wallet. Despite this agreement, El Salvador continues to increase its Bitcoin reserves, reinforcing its long-term commitment to the cryptocurrency.
Kraken to Delist USDT and Four Other Stablecoins in Europe
In an effort to comply with European crypto regulations, Kraken has announced plans to gradually phase out support for five stablecoins, including Tether’s USDT. According to the official announcement, USDT will be fully delisted by March 31, 2025, to align with the European Union’s Markets in Crypto-Assets Regulation (MiCA). Alongside USDT, Kraken will also remove support for PayPal USD (PYUSD), Tether EURt (EURT), TrueUSD (TUSD), and TerraClassicUSD (UST).
Kraken emphasized that these changes will ensure compliance with MiCA while allowing the exchange to continue providing an optimal trading experience for its European users.
To facilitate an orderly transition, Kraken will delist USDT in stages:
- February 13, 2025: Margin pairs involving the affected assets will enter “reduce-only” mode, meaning EEA clients can only close or reduce existing positions.
- February 27, 2025: Affected tokens will move to “sell-only” mode, restricting EEA clients from generating new deposit addresses for these assets while still allowing trading.
- March 24, 2025: Kraken will halt all spot trading for the affected assets, closing open orders and preventing further exchanges into other cryptocurrencies or fiat.
- March 31, 2025: Any remaining holdings of these assets in EEA client accounts will be automatically converted into an equivalent stablecoin.
Kraken reassured users that any deposits made to existing addresses after the specified deadlines will only be available for withdrawal. These changes will exclusively impact clients within the European Economic Area (EEA).
Conclusion
Today’s crypto developments highlight the ongoing impact of global policies on digital assets. Trump’s tariffs have led to market fluctuations, affecting Bitcoin’s stability. Meanwhile, El Salvador remains committed to Bitcoin accumulation despite IMF-imposed restrictions. Lastly, Kraken’s delisting of stablecoins in Europe reflects growing regulatory pressures under MiCA. As regulatory frameworks evolve, crypto investors must stay informed and adapt to these changes to safeguard their assets and trading strategies.
FAQs
Why did Bitcoin drop below $100,000?
Bitcoin’s decline is linked to Donald Trump’s import tariffs, which have raised concerns about inflation and market instability, leading investors to shift toward traditional assets.
How many Bitcoin does El Salvador own now?
As of February 1, 2025, El Salvador holds over 6,055 BTC, valued at approximately $612 million.
Why is Kraken delisting USDT and other stablecoins?
Kraken is removing support for five stablecoins to comply with the European Union’s Markets in Crypto-Assets Regulation (MiCA).
Will Kraken’s delisting affect users outside of Europe?
No, these changes will only impact users in the European Economic Area (EEA).
I am Toby Rothschild, Co-Founder of Spearmint and author at Coinography, and a strategist focused on advancing Web3 innovation, digital ecosystems, and the future of decentralized technology. I combine product thinking, creative leadership, and deep interest in emerging trends to help shape how individuals and organizations interact with the next generation of digital systems.
My work centers on understanding how blockchain, AI, and digital identity are reshaping global industries. At Spearmint, I help lead the direction of initiatives that bring clarity, structure, and meaningful user experiences to complex technological environments. I focus on bridging vision with execution, ensuring that innovation remains practical, scalable, and aligned with long-term growth.
As an author at Coinography, I create insights that translate fast-moving Web3 developments into clear, useful narratives. I explore topics such as decentralized governance, digital identity, creator economies, token models, protocol design, and the shifting cultural patterns around emerging technology. My aim is to make digital transformation more understandable and approachable for a wider audience.
I believe that Web3 is not only a technological shift but a cultural and creative one. Strong ideas, thoughtful communication, and human-centered design will shape which technologies thrive and how communities evolve around them. My writing and research reflect this belief, focusing on clarity, relevance, and long-term perspective.
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