Crypto Market Plunges as Trump Tariffs Trigger Global Sell-Off
Bitcoin and other major cryptocurrencies saw significant declines on Monday as escalating trade tensions—driven by U.S. President Donald Trump’s newly imposed tariffs on China, Canada, and Mexico—sparked a broader market sell-off.
Bitcoin dropped 6.2% to $94,088.1 by 02:01 ET (07:01 GMT), hitting an intraday low of $91,698.80, its weakest level in three weeks.
Ethereum, the second-largest cryptocurrency by market capitalization, also suffered a steep decline, falling 18% to $2,567.26, a price not seen since early November.
Bitcoin Declines Amid Broader Market Sell-Off
The downturn in the crypto market coincides with rising investor anxiety over a potential global trade war.
Trump’s announcement of a 25% tariff on imports from Mexico and Canada, alongside a 10% levy on Chinese goods, has intensified fears of inflationary pressures and liquidity constraints.
These developments have fueled a risk-off sentiment across financial markets, prompting investors to pull back from volatile assets like cryptocurrencies.
Analysts highlight that the crypto market, known for its high volatility, is particularly sensitive to macroeconomic factors such as trade policies and inflation concerns.
The newly imposed tariffs are expected to disrupt global supply chains, potentially driving up production costs and consumer prices. This economic uncertainty has led investors to reassess their crypto holdings.
Some market experts attribute the ongoing turbulence to fears of an impending economic downturn, suggesting that investors may find opportunities to accumulate assets at lower prices during this period.
Altcoins Plunge as US Tariffs Raise Liquidity Concerns
Earlier, expectations of pro-crypto regulations under Trump’s administration had buoyed digital asset prices. However, the tariff announcement outweighed this optimism, significantly impacting market sentiment.
Most altcoins experienced deeper losses than Bitcoin, reflecting an increased flight from riskier assets:
- XRP plunged nearly 19%, trading at $2.3579.
- Solana dropped 15.5%, while Polygon tumbled 19% and Cardano slumped 22%.
- Dogecoin, a popular meme token, fell 17%, while Trump-themed token $TRUMP declined 14%, hitting a record low of $16.349.
