US President Donald Trump’s second term has pushed the crypto industry into a sort of turmoil and volatility. Recently, it faced renewed volatility following Trump’s announcement on April 2, 2025 to impose tariffs on several of US’ trading partners. The policy of a minimum 10 per cent tariff has contributed to overall economic uncertainty and has seen major digital assets fall in major cryptocurrency.
Crypto Market Reaction
According to Coinmarketcap data, Bitcoin dropped from nearly $88,000 to just above $83,000 following Trump’s tariff announcement.
At the time of writing, Bitcoin fell 1.24 per cent to $83,146.63, moving between $88,466.96 and $82,182.32 in the past 24 hours, according to CoinMarketCap. Ethereum dropped 2 per cent, while XRP and Solana fell 1.52 per cent and 4.55 per cent, respectively. Avalanche saw the biggest loss, sinking 16.88 per cent.
The total cryptocurrency market capitalisation fell to $2.67 trillion, marking a 1.31 per cent decline, as traders reacted to the latest economic developments.
Vedang Vatsa, founder of Hashtag Web3, said that Bitcoin’s price dip demonstrated its sensitivity to broader economic developments.
He said: “The recent tariffs have impacted financial markets, causing Bitcoin to decline. This highlights how macroeconomic shifts and investor sentiment influence crypto. With uncertainty and potential retaliatory measures ahead, further volatility is likely. Investors should keep an eye on geopolitical developments and assess their risk exposure.”
Some experts, however, believe Bitcoin could benefit in the long run.
Edul Patel, co-founder and CEO of Mudrex said: “Trump’s tariffs have introduced economic uncertainty, potentially increasing Bitcoin mining costs due to rising ASIC chip prices. While this could impact miner profitability, Bitcoin remains resilient, as investors turn to it as a safe-haven asset. If trade tensions escalate, long-term capital inflows into Bitcoin could rise, reinforcing its role in uncertain markets.”
Sathvik Vishwanath, co-founder and CEO of Unocoin says: “Bitcoin’s recent dip from $88,000 to $83,000 reflects a temporary reaction to uncertainty. While short-term volatility is expected, Bitcoin’s long-term value as a decentralized hedge remains intact, with potential for growth if global tensions continue.”
On April 2, 2025, Trump announced a list of reciprocal tariffs on multiple trading partners, such as Vietnam, 46 per cent; Sri Lanka, 44 per cent; and China, 34 per cent. The European Union was hit with a 20 per cent tariff, the United Kingdom with 10 per cent, and Japan with 24 per cent. India, meanwhile, was subjected to a 26 per cent “discounted reciprocal tariff” on its exports to the US.
