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Trump’s tariffs have caused trouble in the crypto market

The crypto market crash follows Trump’s tariffs—vectors in panic The announcement of large tariffs by President Trump causes fear. Bitcoin and Ethereum went down but started recovering soon. According to analysts, clearer trends could stabilize the prices in the long term.

The cryptocurrency market saw giant volatility as the former U.S. The global trade troubles escalated after President Donald Trump announced wide-ranging tariffs. Initially, Bitcoin and other big coins rose on the news that Trump was announcing tariffs on a raft of countries. But as soon as the reality set in, cryptocurrency fell precipitously.

Trump’s new trade policy includes a 10% tariff on all imports, with a higher tariff on major countries of origin: China—34% and China—34%;0%Japan—24%. In his address at the White House, Trump said the US is only reacting to long-existing unfair trade practices.

Bitcoin rose to a session high of $88,500 but fell 2.6% to $82,876. Ethereum went down more than Bitcoin, dropping over 6 percent to $1,797 (down from $1,934). The total market capitalization of cryptocurrencies fell by 5.3% to reach $2.7 trillion. According to the Crypto Fear & Greed Index, market sentiment is now in a state of extreme fear.

Even though there was a dip, cryptos are clawing back. The price of Bitcoin went up, and the price of Ethereum increased as well.

The stock markets also faced turbulence, as the S&P 500 suffered a loss of over $2 trillion in market capital. The short Bitcoin upward spoof led the market to believe that the tariffs were not going to be so bad, analysts said.

Crypto analyst Rachael Lucas has stated that this volatility is indicative of traders repositioning. There was a 46% increase in the volume of BTC markets. “Big players took advantage of price spikes while small players sat on one side,” she added.

Market reactions may continue to develop depending on global responses. Experts fear that a further sell-off may happen if countries react with their measures. U.S. Treasury Secretary Scott Bessant suggested that the tariff rates should be the maximum unless countermeasures result in additional tariffs.

In a recent press note, crypto investment strategist David Hernandez said Trump’s clarity on his policy may lend support in the long term. “Markets thrive on certainty. He stated that the removal of speculation may present an opportunity for institutional investors to enter at lower valuations.

In the future, the response of countries like China, Mexico, and South Korea will probably have a big effect on crypto. Investors are on alert for any countermeasures to enhance volatility and impact price movement.

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