10-3-2025 – Former Bank of Canada Governor Mark Carney’s ascension to Prime Minister has intensified the already strained US-Canada relations. Carney, succeeding Justin Trudeau in the Liberal Party leadership, delivered a resolute inaugural address, directly challenging US President Donald Trump’s trade policies and asserting Canadian sovereignty.
The diplomatic tension has sent ripples through the cryptocurrency markets, with Bitcoin retreating below the $81,000 mark before stabilising at $82,000, marking a 4% decline. The broader digital asset market witnessed substantial losses, with Ethereum and XRP experiencing over 6% declines, whilst Dogecoin suffered a more severe 10% downturn.
Trump’s recent executive order establishing a Strategic Bitcoin Reserve has garnered mixed reactions from industry leaders. Chainlink co-founder Sergey Nazarov expressed optimism about increased governmental engagement with blockchain technology, whilst Coin Bureau’s Nic Puckrin and Bitcoin maximalist Justin Bechler remained sceptical of the summit’s effectiveness.
Adding to market concerns, the Atlanta Federal Reserve’s GDPNow model projects a 2.4% contraction for Q1 2025, suggesting potential recessionary pressures. Trump, appearing on Fox News’ Sunday Morning Futures, sidestepped direct questions about recession possibilities, instead emphasising his focus on wealth repatriation.
US Treasury Secretary Scott Bessent has indicated ongoing discussions regarding additional Bitcoin acquisitions, whilst confirming the cessation of seized Bitcoin sales. The initiative aims to position Bitcoin alongside traditional reserve assets like gold, though market confidence remains tentative.
The cryptocurrency market capitalisation has contracted by 6% to $2.8 trillion, with leveraged liquidations reaching $600 million. Smaller-cap tokens, including Injective, Maker, and Render, recorded double-digit percentage losses, reflecting broader market uncertainty.
Amidst this volatility, Canada maintains its 25% retaliatory tariffs on US consumer goods, responding to Trump’s controversial trade measures targeting Canada, Mexico, and China. Carney’s categorical rejection of Trump’s narrative, particularly regarding Canada’s potential status as the “51st US state,” underscores the deepening rift between the North American neighbours.