Thursday, April 3, 2025

Crypto Market Drops as Trump Announces Higher Tariffs

Crypto Market Drops as Trump Announces Higher Tariffs

The cryptocurrency market plummeted following U.S. President Donald Trump’s announcement of higher-than-expected reciprocal tariffs. Markets initially hoped for clarity on trade policies, but the unexpectedly steep tariffs triggered a sell-off.

Market Reaction & Key Metrics

April 3, the total cryptocurrency market cap stood at $2.73 trillion, down 0.14% from the previous day. However, trading volume surged 31% to $101.9 billion, while Bitcoin’s dominance rose 0.30 percentage points to 61.95%.

Bitcoin & Ethereum Performance:

  • Bitcoin (BTC): $84,893.47 (-0.47%)

    • Initially spiked above $88,000 after the announcement

    • Quickly dropped below $85,000

  • Ethereum (ETH): $1,865.22 (-2.61%)

  • Top 10 altcoins all followed a downward trend

Key Details of Trump’s Tariff Announcement

Trump’s policy imposes high reciprocal tariffs based on non-tariff trade barriers. The highest tariff was imposed on Cambodia (49%), followed by:

  • Vietnam: 46%

  • Thailand: 36%

  • China: 34%

  • Taiwan: 32%

  • South Korea: 25%

  • Japan: 24%

Crypto Market Uncertainty Increases

Rather than resolving uncertainty, Trump’s announcement has amplified concerns over trade tensions, leading to increased market volatility. The crypto market could face continued downside pressure as investors react to evolving macroeconomic risks.

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