- Bitcoin and major cryptocurrencies plummeted after U.S. President Trump’s tariffs on China, Mexico, and Canada sparked a global sell-off.
- The broader crypto market, including altcoins like Ethereum and XRP, faced sharp declines amid rising concerns over inflation and economic uncertainty.
Bitcoin’s recent price slump has sent shockwaves through the cryptocurrency market, with the world’s leading digital asset falling 6.2% to $94,088.1 as of Monday. The downturn is largely attributed to escalating trade tensions, particularly U.S. President Donald Trump’s newly imposed tariffs on key trading partners—Mexico, Canada, and China—which triggered a broader sell-off across financial markets.
BTC decline marks its lowest price in three weeks, with the cryptocurrency briefly dipping to $91,698. The fall is compounded by significant losses across the altcoin market. Ethereum, the second-largest cryptocurrency, dropped 18% to $2,567.26, its lowest level since November, while XRP saw a nearly 19% decline, plunging to $2.3579. Solana, Polygon, and Cardano also experienced sharp falls, reflecting a broader risk-off sentiment gripping investors.
Trump Tariffs Send Shockwaves Across Global Markets
The sell-off comes amid growing investor concern over a potential global trade war, sparked by Trump’s announcement of a 25% tariff on imports from Mexico and Canada and a 10% levy on Chinese goods. The tariffs have raised fears about inflation and liquidity issues, leading investors to move away from riskier assets, including cryptocurrencies.
Analysts have pointed out that the crypto market, notorious for its volatility, is particularly vulnerable to macroeconomic factors like trade policies and inflation expectations. The uncertainty created by these tariffs could disrupt global supply chains, potentially raising production costs and consumer prices. As such, many investors have opted to reassess their exposure to digital assets, particularly in the face of an impending economic slowdown.
Meme Tokens and Altcoins Struggle as Global Risk Appetite Dwindles
While Bitcoin has been hit hard, the pain has been even more pronounced in the altcoin and meme token markets. Solana slumped 15.5%, Polygon dropped 19%, and Cardano saw a steep 22% decline. Among meme tokens, Dogecoin fell by 17%, and President Trump’s meme coin, $TRUMP, suffered a 14% drop, hitting a record low of $16.349.
Earlier optimism about the potential for friendlier cryptocurrency regulations under Trump’s administration had helped bolster token prices. However, the recent tariffs have overshadowed those gains, as the market adjusts to the reality of heightened global trade tensions and the economic uncertainties that come with them.
What’s Next for Bitcoin and the Crypto Market?
With the crypto market now facing a period of heightened volatility, analysts are advising investors to keep a close eye on macroeconomic trends and global developments. The uncertainty surrounding trade policies and inflation may continue to drive market swings, but some experts suggest that the current downturn could present opportunities for those looking to acquire assets at lower prices.
For now, the crypto market appears to be in a holding pattern, with Bitcoin and its peers grappling with the broader financial landscape shaped by Trump’s tariffs and the possibility of a global economic slowdown.
