Crypto Market Falls On Trump Global Tariff Decision
Crypto markets declined following U.S. President Donald Trump's announcement of a national emergency and the imposition of sweeping tariffs on all countries as part of his trade war strategy.
The administration introduced a 10% tariff on all imports starting April 5, with some countries facing steeper rates—China at 34%, the European Union at 20%, and Japan at 24%.
During an April 2 speech at the White House, Trump stated that the U.S. is charging countries “approximately half of what they are and have been charging us.”
Initially, the crypto market reacted positively to the 10% tariff news, but as the full extent of the policy became clear, prices fell sharply.
Bitcoin, which had rallied to $88,500, dropped 2.6% to around $82,876. CoinGecko data showed Ethereum fell over 6% from $1,934 to $1,797.
The total crypto market cap dropped 5.3% to $2.7 trillion. The Crypto Fear & Greed Index posted a score of 25 on April 2, signaling “extreme fear.” Some losses have since been recovered.
Bitcoin rose 0.8% to $83,205, while Ether gained 1.2%, reaching $1,810. Stock markets also took a hit.
The Kobeissi Letter reported on X that the S&P 500 lost over $2 trillion in market cap during the announcement, equating to $125 billion per minute.
Rachael Lucas, a crypto analyst at BTC Markets, described the initial price jump as a response to “uncertainty relief,” followed by a sell-off once the full tariff details emerged.
She noted that trading volume on BTC Markets surged 46%, as large investors cashed in on the spike and smaller traders hesitated.
She warned that a strong retaliatory response from China or the EU could trigger another wave of panic selling.
U.S. Treasury Secretary Scott Bessent, in an interview with Bloomberg, urged trading partners not to retaliate, emphasizing that the current tariffs are likely the peak if further levies are avoided, which could bring some stability to the market.
David Hernandez, a crypto investment expert at 21Shares, said Trump’s announcement brought clarity, which could be beneficial for the market long term.
“Although the tariff rates were slightly higher than expectations, the announcement provided much-needed clarity on the scope and scale of the policy,” he said.
He added that certainty tends to favor markets, and institutional investors may see an opportunity to buy assets at lower valuations.
He also suggested that countries like Mexico, China, South Korea, and Japan could be weighing their responses, which will influence market movements in the coming days.
Sources:
https://cointelegraph.com/news/national-emergency-trump-tariffs-dent-crypto-prices
https://www.whitehouse.gov/live/
https://www.coingecko.com/en/coins/bitcoin
https://www.coingecko.com/en/coins/ethereum
https://alternative.me/crypto/fear-and-greed-index/
https://x.com/KobeissiLetter/status/1907556839686054240
https://x.com/DaanCrypto/status/1907526826986971639
https://x.com/RapidResponse47/status/1907540793130115192
https://www.bloomberg.com/news/videos/2025-04-02/bessent-tariffs-offer-certainty-barring-retaliation
Try to invite your friends and earn together
10% of trading fees of your friends and 5% from the earnings of your friends.
