#TrumpTariffsyptoTariffDrop

President Donald Trump’s tariffs, announced in early 2025, have significantly impacted cryptocurrency markets, causing sharp declines followed by partial recoveries. On April 2, 2025, dubbed “Liberation Day,” Trump imposed reciprocal tariffs, including 50% on Chinese goods, 25% on Mexico and Canada, and 10% on other nations, sparking fears of a global trade war. Bitcoin dropped from $109,000 in January to $74,500 by April, with Ethereum, XRP, and Solana also facing steep losses. Crypto stocks like Coinbase and MicroStrategy fell 5-9%. Analysts attribute this to a “risk-off” sentiment, as investors fled volatile assets amid concerns over inflation and economic slowdown. However, some experts, like Binance CEO Richard Teng and Grayscale’s Zach Pandl, argue tariffs could weaken the U.S. dollar’s dominance, potentially boosting Bitcoin’s appeal as a non-sovereign store of value in the long term. A brief market rebound followed Trump’s April 10 pause on some tariffs for 90 days. Despite short-term volatility, optimism persists, with predictions of Bitcoin reaching $130,000-$150,000 if markets stabilize. The crypto market’s correlation with equities highlights its vulnerability to macroeconomic policies, yet its decentralized nature may offer resilience.