The cryptocurrency market is experiencing a significant downturn, with Bitcoin and Ethereum leading the losses, as President Trump’s new tariffs on Chinese goods take effect. This move has triggered a global risk-off sentiment, causing investors to reevaluate their positions in the market.¹

Key Market Movers

Bitcoin: The world’s largest cryptocurrency has dropped 4.1% to $76,550, its lowest point since March 2023. This decline represents a 30% loss from its January high of over $109,000.
Ethereum: The second-largest cryptocurrency has fallen 8.3% over 24 hours, reaching its lowest level since March 2023. This significant drop has pushed Ethereum’s price down, reflecting broader market concerns about escalating trade tensions.
Other Cryptocurrencies: Other major cryptocurrencies have also seen substantial losses, including²:
- Dogecoin: 16.3% decline
- Solana: 18% decline
- Cardano: 23.7% decline

Market Volatility

The crypto market has lost over $1.2 trillion in value since February, with liquidations surpassing $411 million in the last 24 hours. This volatility is partly due to Trump’s sweeping tariffs on 185 countries, triggering a global risk-off sentiment.

Expert Insights

Analysts warn of prolonged market instability as trade tensions escalate. Pav Hundal, lead market analyst at Swyftx, notes that investors are feeling extreme emotions, and the market needs a “circuit breaker” to stabilize sentiment.

Some experts, however, see potential benefits for Bitcoin in the long run. With the US Dollar potentially losing its reserve status, Bitcoin could become a preferred reserve asset. Binance CEO Richard Teng stated that Bitcoin’s recovery could be tied to long-term holders who see BTC as a resilient asset during periods of economic instability.³

Global Market Impact

The tariffs have also affected global markets, with⁴:

Asian markets: Japan’s Nikkei dropped 4%, and Hong Kong’s Hang Seng fell 1.5%
US futures: Dow futures fell by 750 points, or 2%, while S&P 500 and Nasdaq futures slid by 2.2% and 2.5%, respectively
Safe-haven assets: Gold climbed more than 1%, approaching a record high, while US Treasury yields unexpectedly rose.