🚨 Crypto Markets Retract After Trump Announces New Tariffs 🚨

Essential context:

On August 1, 2025, new U.S. tariffs triggered a broad sell-off: Bitcoin fell ~3.2% to about $114,800, while Ether dropped ~2.5%, XRP declined ~6.1%, and Solana plunged ~9.5%.

This was driven by fresh tariff measures including a 10% global baseline and a 35% levy on Canadian imports.

The crypto market wiped out ~3.8% of its total capitalization, fueled by tariff fears and profit-taking.

Why traders are jittery:

U.S. institutional investors are repositioning portfolios, with nearly half signaling caution over Trump's trade policies.

Fed Chair Powell even flagged tariff uncertainty as a headwind to growth, avoiding promises of rate cuts.

The volatility conundrum:

Markets initially rallied on crypto‑friendly rhetoric and efforts to deregulate—but escalating tariffs now threaten global trade and economic sentiment.