Donald Trump has once again crashed the cryptocurrency market

Following the entry into force of new tariffs on Chinese goods initiated by President Donald Trump, global financial markets, including the cryptocurrency sector, have suffered a significant drop. As of Wednesday morning, bitcoin BTC $85,218.97 Bitcoin 0.66% Market capitalization $1.69 trillion VOL. 24 hours $0.62 billion lost 4.1% of its value and is trading at $ 76,550, while ethereum ETH $1,596.81 Bridged Ether (StarkGate) 0.40% Market capitalization $0.14 billion VOL. 24 hours $0.31 billion fell by 8.3%, dropping to its lowest level since March 2023.

Among the top 10 most popular tokens, ethereum has seen the biggest drop. Bitcoin briefly dropped below $ 75,000 a few hours before the tariffs came into effect. Overall, the cryptocurrency has lost about 30% of its value since its January peak of over $ 109,000, the mark recorded before Trump’s inauguration.

Significant losses were also recorded in the altcoin market: Dogecoin DOGE $0.16 Binance-Peg Dogecoin 1.61% Market capitalization $0.4 billion VOL. 24 hours $54.98 million fell by 16.3%, Solana SOL $138.59 Binance-Peg SOL 3.36% Market capitalization $0.15 billion VOL. 24 hours $0.4 billion - by 18%, and Cardano ADA $0.63 Cardano 1.74% Market capitalization $22.58 billion VOL. 24 hours $35.95 million - by 23.7% over the week, according to CoinGecko. According to analyst Pav Hundal of Swyftx, the market has lost more than $ 1.2 trillion since February, which creates an urgent need for an «emotional reset» for investors who operate under constant stress.

The pressure on the crypto market is related to the general instability of financial markets caused by the trade war between the US and China. On Wednesday, Asian stock indices opened down: Japan’s Nikkei 225 fell by 2.6%, and Australia’s ASX 200 by 2%. The day before, the S&P 500 lost 1.5%, bringing it closer to the bear market since mid-February.

In addition, on Tuesday, the yield on ten-year US bonds jumped to 4.4%, which was one of the fastest rises since World War II. The auction of three-year bonds, which took place after Trump’s «Liberation Day» celebration, showed the worst demand since the end of 2023. Analysts attribute this to growing concerns among foreign investors about US debt amid the escalating trade confrontation.