The crypto tariff drop refers to the impact of US President Donald Trump's newly announced tariffs on the cryptocurrency market. On April 2, 2025, Trump declared a national emergency and imposed broad tariffs on all countries, causing a sharp downturn in the crypto market.
The tariffs led to a significant drop in cryptocurrency prices, with Bitcoin (BTC) plummeting from $88,500 to $83,500, and Ethereum (ETH) falling from $1,934 to below $1,800 ¹. The total crypto market capitalization also declined by about 2% to around $2.68 trillion USD.
The market's reaction to the tariffs was initially positive, with a brief spike in cryptocurrency prices. However, as the full details of the tariffs became clear, sentiment turned negative, and prices dropped sharply.
The tariffs have also led to increased volatility in the crypto market, with trading volume surging by 46% as investors adjusted their positions. The Crypto Fear & Greed Index also dropped to 24 points, indicating a shift to fear mode.
Despite the short-term turmoil, some analysts believe that the tariffs could have a positive impact on the crypto market in the long run. The tariffs could erode the US dollar's dominance in global trade, potentially boosting non-sovereign assets like Bitcoin.
