Cryptocurrency Market Faces Pressure: Trump's Tariff Impact
07 April 2025 19:30
Following Donald Trump's election victory, the cryptocurrency market experienced significant losses due to concerns over tariff policies.
On April 7, bitcoin dropped by 5.3%, settling at $74,600, the lowest level since November 7, according to Bloomberg.
Bitcoin under pressure: Trump's tariffs hurt the crypto market
According to CoinGecko, the total market capitalization of cryptocurrencies declined by approximately 12%, reaching $2.47 trillion, a level consistent with Trump's election victory.
Ethereum fell to its lowest mark since March 2023, trading at $1,418.
This decline is attributed to the implementation of Trump's new tariffs, which have already led to significant losses in global financial markets estimated in trillions of dollars.
Charlie Sherri, head of the financial and crypto analysis department at BTC Markets, noted that while there was once belief in the resilience of cryptocurrencies against Trump's tariff policies, investors shifted to an active sell-off mode on Sunday.
Data from Coinglass shows that approximately $868 million worth of cryptocurrency positions were liquidated in the past 24 hours, marking the highest figure in the last six weeks.
Billionaires lose over $200 billion due to Trump's tariffs
On the evening of April 2, U.S. President Donald Trump announced the introduction of new “appropriate tariffs” on imports from many countries.
The tariffs will be: for the EU – 20%, Vietnam – 46%, Taiwan – 32%, Japan – 24%, South Korea – 25%, Thailand – 36%, Switzerland – 31%, Indonesia – 32%, Malaysia – 24%, Cambodia – 49%, the UK – 10%, South Africa – 30%. A basic 10% tariff has been set for Ukraine. The new tariffs do not apply to Russia and Belarus.
The total value of assets for the 500 richest people in the world decreased by $208 billion due to significant tariffs.
Trump propelled bitcoin to historic highs
Bitcoin surged to a record high of over $106,000 after newly elected President Donald Trump proposed creating a strategic reserve of bitcoins in the country.
Hours before the inauguration of President Trump, bitcoin set a new price record, exceeding $109,000.
On February 25, the price of bitcoin fell below $90,000, reaching its lowest level since mid-November.
On December 5, bitcoin reached a record high of $100,000. The day before, the price of bitcoin was $95,000.
This was the highest figure in history.
On November 12, bitcoin increased by approximately 32% after the U.S. elections, reaching an all-time high of $89,599.