Bitcoin and Ether saw a sharp drop on Monday, falling 10% to $91,695.8. The broader cryptocurrency market also tumbled as investor confidence weakened. Ether, the second-largest cryptocurrency, suffered an even steeper drop of 22.7%, reaching $2,434.84.
The sudden sell-off came after U.S. President Donald Trump announced new trade tariffs. His administration imposed a 25% duty on imports from Canada and Mexico, along with a 10% tariff on Chinese goods. These moves heightened fears of a renewed trade war.
Wall Street futures slumped by over 1.5%, reflecting growing uncertainty in financial markets. Investors moved away from riskier assets, including cryptocurrencies. In response to Trump’s tariffs, Canada, Mexico, and China all promised to retaliate. This further pressured global markets and drove safe-haven demand.
Meanwhile, the U.S. dollar surged to a near one-month high. Gold prices also saw an increase, attracting investors looking for stability. However, cryptocurrency markets failed to benefit from this trend.
Trump’s tariffs overshadowed any optimism regarding potential crypto-friendly policies. His administration recently introduced an executive order to create a regulatory framework for digital assets. However, market participants showed little enthusiasm for these efforts.
Additionally, $TRUMP—a memecoin associated with the former president—dropped over 15% to a record low of $16.349. This decline suggests that even assets linked to Trump faced selling pressure amid the broader downturn.
Analysts warn that Trump’s tariffs could lead to higher inflation and slower economic growth. If costs for imported goods rise, businesses may pass these expenses onto consumers. This scenario could reduce the likelihood of interest rate cuts by the Federal Reserve.
For now, traders remain cautious. The crypto market’s next moves will likely depend on further developments in global trade policies and broader economic conditions.
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Bitcoin and Ether drop sharply as Trump’s new tariffs shake markets. Investors move away from riskier assets, driving up the U.S. dollar.
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