Crypto Market Drops $500B Following Trump Tariff Announcement

The cryptocurrency market experienced its worst day in over a year, shedding nearly half a trillion dollars in value within 24 hours. The dramatic collapse was triggered by US President Donald Trumps announcement of new tariffs on Canada, Mexico, and China, raising concerns about a global trade war. The tariffs sent shockwaves through stock markets across Europe, Asia, and the US, but cryptocurrencies bore the brunt as investors rapidly offloaded risky assets.

Unlike traditional markets, crypto trading operates around the clock, allowing investors to react swiftly to the news. Ethereum (ETH) and Ripple (XRP) each lost approximately a third of their value over the weekend, while Solana (SOL) dropped by about a quarter. Bitcoin (BTC) briefly fell below $100,000 but managed to recover, reinforcing its reputation as a “digital gold” safe-haven asset.

The hardest-hit assets were meme coins, including President Trump‘s recently launched $TRUMP coin, which plummeted 70 percent from its peak, $2 billion total liquidation for the first time this year, and CoinMarketCap’s Crypto Fear and Greed Index dipped into ‘fear’ territory for the first time since October 2024.

“A tidal wave of fear, uncertainty, and doubt has been unleashed across the cryptocurrency market after Trumps Friday tariff announcement,” said Petr Kozyakov, co-founder and CEO of crypto platform Mercuryo. He added, “This once again underlines the highly speculative nature of meme tokens and the high risks that they pose to the uninformed.”

Crypto analysts are closely monitoring Bitcoins key support level of $92,000. If BTC falls below this threshold, further sell-offs are expected. Despite the market turmoil, Trump has positioned himself as a pro-crypto leader, pledging to be the first-ever “crypto president.” He has already signed an executive order expected to benefit the cryptocurrency industry.

Bitcoin‘s recent price surge has been partly attributed to Trump’s policies, with the cryptocurrency reaching an all-time high of nearly $110,000 on the day he entered office. Among the most anticipated initiatives is the creation of a US Bitcoin reserve, which could further solidify Bitcoins role in the global financial system.

As the market grapples with volatility, the long-term impact of Trumps policies on the cryptocurrency industry remains uncertain. For now, investors are bracing for further turbulence amid escalating trade tensions and shifting market sentiment.