- Bitcoin slumped to $83K as Trump’s crypto reserve hype faded, and trade war fears rattled investor confidence.
- Bitcoin and major altcoins erased recent gains, with Ether, XRP, and Solana posting double-digit losses.
Trump’s Crypto Reserve Boost Loses Steam
Bitcoin’s price took a hit on Tuesday, falling to $83,950. This drop comes after a short-lived rally sparked by U.S. President Donald Trump’s announcement of a national cryptocurrency reserve.
Trump mentioned that Bitcoin and four other cryptos, including Ether, would be part of this reserve. However, he did not provide details on how the reserve would be formed or funded.
Investors grew skeptical, causing Bitcoin and other major altcoins to retreat. The initial excitement quickly faded, and the market turned bearish.
Trade War Fears Add to Market Woes
Adding to the crypto market’s troubles, Trump imposed steep tariffs on China, Canada, and Mexico. The U.S. slapped a 20% tariff on China and 25% duties on Canada and Mexico, escalating trade tensions.
Although tariffs do not directly affect crypto, they dampened investor confidence. Risk appetite shrank, pushing traders away from speculative assets like Bitcoin. Many turned to safe havens such as gold and the Japanese yen.
The fear of a prolonged trade war weighed on financial markets. Investors worried that slowing global growth, coupled with high inflation, would hurt all risk-driven assets, including crypto.
Major Altcoins Also Take a Hit
Bitcoin wasn’t the only crypto feeling the heat. Ether dropped 14% to $2,106.28, while XRP plummeted 16.1% to $2.3597.
Solana and Cardano, which were also included in Trump’s proposed reserve, saw even bigger declines. Solana fell 18.9%, and Cardano sank 22.7%. Polygon lost 15.5%.
Meme coins weren’t spared either. Dogecoin slid 15.2%, while Trump’s own $TRUMP token crashed 22.8%, nearing record lows.
What’s Next for Bitcoin?
Trump is set to host the first White House Crypto Summit on Friday. This could provide more clarity on his administration’s crypto policies.
Additionally, the president has appointed several pro-crypto officials to key regulatory positions. Their stance on digital assets may shape the market in the coming months.
For now, BTC remains under pressure. The combination of fading Trump hype and growing trade war fears has created a tough environment for crypto traders. Will the market bounce back after the summit? Investors are watching closely.
