#LearnAndDiscuss

Trump Tariffs & Crypto

Donald Trump's recent announcement of reciprocal tariffs on over 180 countries sent shockwaves through the global economy, including the cryptocurrency market. Before the announcement, Bitcoin was trading near $87,000, but it plummeted to $82,000, a drop of over 6% ¹ ². The cryptocurrency market as a whole lost value, with a 1.61% decrease in a single day ³.

The tariffs, which range from 10% to 49% depending on the country, are intended to address trade imbalances between the US and its trading partners. However, experts warn that this move could lead to a trade war, with countries retaliating against the US with their own tariffs ³.

The impact on the cryptocurrency market was immediate, with Bitcoin, Ethereum, and other major cryptocurrencies experiencing significant losses. Bitcoin's price dropped to $82,143 before slightly recovering to $83,499.45, down 1.28% in 24 hours ³. Ethereum fell to $1,824.63, a 2.8% decline, while Solana dropped over 3.45% to $120.15 ³.

In contrast, gold prices soared to record levels, becoming the top safe-haven asset during the market panic. Spot gold traded at $3,128 per ounce, while US gold futures closed at $3,152, an all-time high ³.

Financial experts are divided on the implications of Trump's tariffs. Some believe it could lead to fairer trade practices, while others warn of rising consumer prices, broken global supply chains, and long-term economic instability ³. As the situation continues to unfold, investors are advised to exercise caution and monitor market developments closely.