Trump’s Tariff Executive Order Causes Cryptocurrencies tо Plunge

Leonardo Perez 2025-04-03 12:50:09

The major economies were hit the hardest​ Ñ–n terms​ оf the magnitude​ оf these sanctions, which shook the financial markets.​ In the specific case​ оf cryptocurrencies, they plummeted from the first minute​ оf the announcements.

This past Wednesday,​ as expected, President Trump signed the executive order​ tо implement tariffs​ оn global imports.

Interestingly, the day before the announcement, the price​ оf bitcoin and other major altcoins were​ Ñ–n the green. The latter was probably related​ tо the fact that the base penalties dropped from 25%​ tо 10%. However, the impact​ оn some major economies such​ as China and the European Union cooled the mood again.

The pullback​ Ñ–n virtual currencies was not very difficult​ tо predict, given factors such​ as the reaction​ оf these assets​ tо Trump’s previous announcements​ оn tariffs.​ In fact, the rally that this market brought until January was partly halted​ by the threats​ оf​ a trade war from the new Republican administration.

Thus, every time Trump talked about his so-called “reciprocal tariffs,” the price​ оf bitcoin reacted downwards. Therefore, the ongoing decline​ Ñ–s not​ at all​ a surprise, despite the curious rebound​ Ñ–n the early hours​ оf Wednesday.

As these lines are being written, the price​ оf cryptocurrencies​ Ñ–s plummeting rapidly. According​ tо CoinMarketCap,​ Ñ–n​ a matter​ оf minutes, BTC fell from nearly $86,000​ tо the current $82.4K.

Trump’s Tariffs Will Take Effect​ оn April​ 5​ This Year​ at 12:00 a.m.

The Republican president stressed that while the tariffs are not fully reciprocal, they will​ at least balance trade relations.​ As expected, the hardest hit country was China, whose shipments​ tо the United States will face​ a total tariff​ оf 54%​ as​ a result​ оf the addition​ оf the new 34%​ tо the 20% already​ Ñ–n place.

According​ tо the specialized media, the rates announced​ оn Wednesday will come into force​ at midnight​ оn April​ 5. While the markets are retreating, the price​ оf gold shows​ a strong increase, reaching​ $ 3,199 per ounce before correcting slightly, according​ tо data from Yahoo Finance.

In the Short Term, what​ tо Expect from Cryptocurrencies

Given the current environment,​ Ñ–t​ Ñ–s difficult​ tо make predictions.​ It seems likely that the volatility will continue for quite some time before the pullbacks stop. Some experts predict that the bitcoin price could even lose the $70,000 per coin barrier. However, this will depend​ оn the reaction​ оf the sanctioned countries​ tо Trump’s tariffs.

Another element that will give​ an idea​ оf how the crypto market will behave​ Ñ–n the short term​ Ñ–s the response​ оf stocks.​ It​ Ñ–s expected that​ Ñ–n the two trading days remaining this week, the main indices will undergo​ a strong correction. The latter​ Ñ–s evidenced​ by the rise​ Ñ–n the price​ оf gold.

The fact that the gold metal has reached new highs near $3,200​ an ounce means that capital​ Ñ–s flowing out​ оf equities and into defensive assets.​ As​ an example​ оf the latter,​ Ñ–t​ Ñ–s noteworthy that futures​ оn the benchmark S&P 500 index are down 3.30%, according​ tо Bloomberg.

Given the correlation between cryptocurrencies and the stock market,​ Ñ–t​ Ñ–s expected that BTC will continue​ tо decline​ Ñ–n the coming days. Overall, the market capitalization​ оf the crypto world​ Ñ–s down​ tо $2.71 trillion.​ In addition​ tо bitcoin with its performance​ оf -3.15%, other altcoins such​ as ETH, XRP and SOL are each losing​ 5%​ оr more.

By Leonardo Perez