Bitcoin and other major cryptocurrencies were down as President Donald Trump put tariffs on the US trading partners which led to a decline in risk assets. Bitcoin dropped by 7% to approximately $82,000 and then rebounded. Other altcoins such as Ether, XRP, Solana also fell in value. For instance, Solana’s value plummeted by more than 9%.
Trump announced a 10% tariff on all exporters to the US, with additional duties targeting around 60 countries. China faces a 34% tariff, the European Union 20%, India 26%, and Japan 24%. While cryptocurrencies initially absorbed the news, they faltered as Trump did not mention crypto by the end of the speech.
According to John Wu, the president of Ava Labs, cryptocurrencies are generally considered as risk-on assets and are not well-suited to periods of risk-off such as high-interest rates or introduction of trade tariffs. The S&P 500 ETF also fell by 2.5% after the US market closed.
DYOR CEO Ben Kurland said that the market was not caused by tariffs but the return of policy volatility. Traders do not like uncertainty and this is what this move implies for the future.
Gold, however, rose to an all-time high of $3,160 per ounce due to its safe-haven status. Bitcoin enthusiasts have often regarded it as a similar safe haven, but the fluctuations of the past few months have raised questions.
According to the words of Rachael Lucas, the BTC Markets analyst, the future of Bitcoin will greatly depend on geopolitical activities, changes in the policy, and the perception of traders as to whether it is a safe-haven instrument or a risky one.
Also Read: Trump Liberation Day: Stocks Crash, Crypto Braces & Gold Soars
