Bitcoin and the broader cryptocurrency market faced significant selling pressure Thursday after former President Donald Trump unveiled sweeping new tariffs, sparking fears of a global trade war and rattling financial markets.
Market Reaction
Bitcoin fell 5% to $81,914, while Ether dropped 6% and Solana’s token plunged 11%.
The S&P 500 suffered its worst single-day decline since 2020, with crypto-linked stocks like Coinbase and MicroStrategy down roughly 7% and 10%, respectively.
The total crypto market cap shed 160billionin24hours,slidingfrom160billionin24hours,slidingfrom2.78 trillion to $2.62 trillion.
Trump’s Tariff Plan
Trump’s proposal includes:
A 10% baseline tariff on all foreign goods.
A 25% levy on foreign-made cars.
Country-specific hikes, including 20% on the EU and 46% on Vietnam.
The move has intensified concerns over inflation, economic slowdown, and potential retaliation from trading partners.
Why Crypto Took a Hit
“Bitcoin trades at the intersection of narrative, liquidity, and leverage. Right now, it’s behaving like a high-beta macro asset, tracking real yields and dollar strength,” said Ben Kurland, CEO of DYOR.
David Hernandez of 21Shares noted that while crypto showed relative resilience compared to stocks, the tariffs introduced fresh uncertainty. “Markets thrive on certainty,” he said. “With the policy now clarified, institutional investors may see an opportunity in compressed valuations.”
Broader Market Impact
The Dow Jones and S&P 500 each fell over 3%.
Tech stocks, tracked by the Nasdaq 100 (QQQ), slid 4% in after-hours trading.
Crypto remains “especially reactive to uncertainty,” said Nicholas Roberts-Huntley of Concrete, as investors view digital assets as higher-risk.
Long-Term Pressure on Bitcoin
The sell-off extends a months-long slump for Bitcoin, which has retreated from its January peak of 109,000∗∗toaslowas∗∗109,000∗∗toaslowas∗∗78,000 in March. The Fed’s hawkish stance and now Trump’s tariffs have compounded the downturn.
As markets digest the implications of heightened trade barriers, volatility in both crypto and equities is expected to persist.