Bitcoin, Cryptocurrencies Plummet Amid Trump's New Tariffs and Global Market Sell-Off

Bitcoin and Cryptocurrencies Drop Amid Global Market Turmoil

Bitcoin fell 0.8% to $83,421.50 on Thursday as U.S. President Donald Trump announced a 10% universal tariff on all imports, effective April 5, 2025. Additionally, steep reciprocal tariffs were imposed on key trading partners, including China, Japan, the European Union, India, and Vietnam, ranging from 20% to 54%. These measures have heightened fears of a global trade war, leading to a broader risk-off sentiment in financial markets.

Global Markets React to Trade Policy Changes

Major U.S. stock index futures and Asian stock indices plummeted as investors moved away from risky assets. Bitcoin, often seen as "digital gold," has not been immune to the sell-off, highlighting its continued correlation with broader market sentiment. Traditional safe-haven assets like gold reached record highs in Asian trading.

Crypto-Related Stocks and Altcoins Decline

Shares of crypto-related companies, including Coinbase Global (-7.5%), Marathon Digital (-7.3%), Riot Platforms (-7%), and Strategy (-4.6%), tumbled in extended trading. Most altcoins followed Bitcoin's lead, with Ethereum down 1.2%, XRP slipping 0.2%, Solana dropping 3.2%, and Polygon falling 3.5%. Meme tokens like Dogecoin (-1%) and $TRUMP (-7%) also saw significant declines.

Implications for the Crypto Market

The sell-off underscores the crypto market's sensitivity to global economic uncertainty and trade policy changes. As investors flock to traditional safe-haven assets, cryptocurrencies are reminded of their volatility and vulnerability to broader market sentiment.