2 min read
Bitcoin’s price has dropped nearly 10% since U.S. President Donald Trump’s announcement of sweeping global tariffs, sparking volatility across financial markets and raising fears of a looming recession.
The flagship cryptocurrency fell sharply to around $77,500, marking a 7% plunge in just 24 hours and a total decline of nearly 10% since the tariffs were unveiled. Bitcoin had remained relatively stable above $80,000 for much of the year but has now seen a significant correction, shedding nearly 28% since its all-time high of $110,000 earlier this January, according to data from CoinMarketCap.
The ripple effect extended across the broader crypto market. Major altcoins like Ethereum and Solana fell by approximately 12%, while the total crypto market cap dropped 7% in the same window.
Analysts attribute this downturn to increasing investor anxiety following Trump’s imposition of 10% blanket tariffs on imports from nearly all countries, a move that triggered China’s retaliation with a 34% tariff on American goods. The aggressive stance has sent shockwaves through global equity markets — with Dow Jones futures down 4%, S&P 500 sliding nearly 5%, and Nasdaq 100 tumbling 5.3%.
Adding to the crypto chaos, over $250 million in long Bitcoin positions were liquidated within a day, per CoinGlass data — a clear indication of shaken investor confidence.
While Bitcoin had earlier benefitted from Trump’s creation of a new strategic reserve last month, which momentarily boosted the market by over half a trillion dollars, his recommitment to tariff enforcement has shifted sentiment dramatically. Economists at JPMorgan have since raised the U.S. recession risk to 60%.
Trump defended the tariff policy on his Truth Social platform, stating, “We have massive financial deficits with China and the EU and many others. The only way this problem can be cured is with tariffs… already in effect, and a beautiful thing to behold.”
With around $7 trillion wiped off global stock markets since the tariff rollout on April 2, experts suggest that Bitcoin’s future price movement will likely continue to mirror traditional market trends, especially as macroeconomic instability overshadows potential gains from regulatory leniency under the Trump administration.
